If the transferee of a Beauty Bungalows franchise is a sibling of the franchisee, is the transfer fee required?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
rom all claims that may be brought by you or any principal;
- (d) The Transfer is of all rights between Franchisee (or Franchisee's affiliate) and Franchisor (or Franchisor's affiliate) related to this Agreement;
- (e) Franchisee pays Franchisor a fee to transfer the Business (the "Transfer Fee") in the amount of $5,000, provided no Transfer Fee will be require
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows's 2025 Franchise Disclosure Document, a franchisee is not required to pay a transfer fee of $5,000 if the transfer is to a sibling. This falls under specific conditions where the transfer fee is waived.
Specifically, the FDD states that no transfer fee is required if the transferee is a child, parent, sibling, or spouse of the franchisee (or the individual owners of the franchisee if the franchisee is an entity). This provision aims to facilitate transfers within the immediate family without incurring additional costs.
For a prospective Beauty Bungalows franchisee, this means that if they decide to transfer their franchise to a sibling, they can avoid paying the $5,000 transfer fee, which can be a significant saving. This can be particularly beneficial in situations where the franchisee wishes to pass the business on to a family member or needs to transfer ownership due to personal circumstances.