When is the transfer fee due to Baya Bar for a transfer between owners?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
| (1) | (2) | (3) | (4) |
|---|---|---|---|
| Fees (1) | Amount | Due Date | Remarks |
| Insufficient Funds Fee | $50 per occurrence | On demand, if incurred | Payable if there are insufficient funds in your account to pay fees due to us. If you incur three insufficient funds fees in any 12-month period, we have the right to terminate your Franchise Agreement. |
| Collections Costs | Reimbursement of our reasonable costs (not to exceed $250) | As incurred | Payable if we incur costs (including reasonable attorney's fees) in attempting to collect amounts you owe to us. |
| Transfer Fee – Transfer Between Owners | $2,500 | With request for approval of transfer | For any transfer of ownership interests or shares between the owners of the franchise, or if you are adding a new owner (as long as maj |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, a $2,500 transfer fee is required when transferring ownership interests or shares between current owners of the franchise, or when adding a new owner, provided that the majority ownership does not change. This fee is due at the time the franchisee submits a request for approval of the transfer to Baya Bar.
It is important to note that this $2,500 fee applies specifically to transfers between existing owners or the addition of a new owner without altering majority control. A separate $10,000 transfer fee is due upon completion of the transfer in other scenarios. However, Baya Bar does not charge a fee for a one-time transfer from individual owners to a corporate entity established for ownership convenience.
Prospective franchisees should carefully consider these transfer fee implications, especially if they anticipate changes in ownership structure. Understanding the specific conditions under which each fee applies can help in financial planning and decision-making related to the franchise.