When is the transfer fee payable to Bang Cookies if a transfer request is approved?
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 is payable 'on demand' if Bang Cookies approves a transfer request. Specifically, the fee must be paid prior to the execution of final transfer agreements and authorization. The transfer fee itself is $15,000.
This means that if a franchisee decides to sell their Bang Cookies franchise to a new owner, they must first obtain approval from Bang Cookies. If approved, the franchisee will be required to pay Bang Cookies $15,000 before the final transfer paperwork is completed and the transfer is officially authorized. This fee covers Bang Cookies's administrative costs and ensures they maintain control over who joins their franchise system.
It is important for prospective franchisees to understand all the fees associated with owning a Bang Cookies franchise, including the transfer fee. This fee can impact the profitability of selling the franchise and should be considered when making business decisions. Franchisees should factor this cost into their long-term financial planning.