When is the Bang Cookies transfer fee of $15,000 payable?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| Non-compliance | Actual fees, costs, and expenses | On demand | Fees, costs and expenses incurred by us as a result of your breach or noncompliance with the terms of your Franchise Agreement. |
|---|---|---|---|
| Supplier Review | Actual fees, costs, and expenses | Within 14 days of invoice | You must pay us the costs incurred by us to review and evaluate a potential supplier, product, or service that you submit to us for approval. |
| Management Service | Actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Transfer | $15,000 | On demand | Payable if we approve your transfer request, but prior to execution of final transfer agreements and authorization. |
Source: Item 6 — OTHER FEES (FDD pages 13–17)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the transfer fee of $15,000 is payable 'on demand.' This means that the fee is due when Bang Cookies requests it. However, the FDD specifies that this payment is required if Bang Cookies approves the transfer request, but it must be paid before the final transfer agreements are executed and authorization is given.
In practical terms, a franchisee looking to sell their Bang Cookies franchise will need to have $15,000 available to pay the franchisor once the transfer is approved. This fee covers Bang Cookies's administrative costs and efforts in reviewing and approving the transfer to a new franchisee. It is important to note that the fee must be paid before the transfer is officially completed.
This 'on demand' payment structure is fairly common in franchising, allowing the franchisor to collect the fee at a specific point in the transfer process. Franchisees should factor this fee and its timing into their financial planning when considering selling their franchise. Understanding the payment terms ensures a smoother transfer process and avoids potential delays or complications.