What is the transfer fee for a Baya Bar franchise?
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 majority ownership does not change) |
| Transfer Fee | $10,000 | Upon completion of the transfer | No fee charged for a one time transfer from individual(s) to a corporate entity formed for convenienc |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the transfer fee varies depending on the type of transfer. A transfer of ownership interests or shares between current owners, or adding a new owner without changing majority ownership, incurs a $2,500 fee. A standard transfer to a new owner is subject to a $10,000 fee.
However, Baya Bar does not charge a fee for a one-time transfer from individual owners to a corporate entity formed for the convenience of ownership. The $2,500 transfer fee is due when requesting approval for the transfer, while the $10,000 transfer fee is due upon completion of the transfer.
These transfer fees are typical in the franchise industry, as they compensate the franchisor for the administrative and legal costs associated with reviewing and approving a transfer. Prospective Baya Bar franchisees should consider these fees when planning for potential future ownership changes.