What is the transfer fee for a Baya Bar franchise if the transfer is among existing owners?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
-----------------------------------------------------------------| | | | Unit Development | | | | Provision | Agreement | Summary | | m. | Conditions for franchisor approval of a transfer | Section 6.3 and 6.4 | Conditions include: our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying developers; you have paid us all amounts owed; transferee signs our then-current form of Multi-Unit Development Agreement, which may have materially different terms from your Multi Unit Development Agreement; you and the transferee sign a General Release in the form of Attachment 3 to the Franchise Agreement; you shall subordinate any claims you have against the transferee to us; our approval of the material terms and conditions of the transfer; payment of a transfer fee equal to 50% of the then current initial franchise fee or 25% of the then-current initial franchise fee for transfer to an existing develop
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 43–52)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the transfer fee for transfers among existing owners is $2,000. This fee is applicable when the transfer of a Baya Bar franchise occurs between current owners within the system.
In addition to the transfer fee, Baya Bar requires that several other conditions be met for the transfer to be approved. These conditions include Baya Bar not exercising its right of first refusal, the transferee meeting the then-current standards for qualifying developers, all outstanding amounts owed to Baya Bar being paid, and the transferee signing the current form of the Multi-Unit Development Agreement. Furthermore, both the transferor and transferee must sign a General Release, and the transferor must subordinate any claims against the transferee to Baya Bar.
It is important to note that the Multi-Unit Development Agreement signed by the transferee may have materially different terms from the original agreement. Prospective franchisees should carefully consider these conditions and potential changes to the agreement when planning a transfer.