Are there any limitations on the transfer fees that Bee Organized can collect?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer Fee" shall have the meaning defined in Article 14.C.(11) of this Agreement. The Transfer Fee is a fixed sum of $15,000.
(8) The transferee, at its expense, must improve, modify, refurbish, renovate, remodel, and/or otherwise upgrade Franchisee's non-residential Administrative Office to conform to the then current standards and specifications of Franchisor, and the transferee must complete such improvements, modifications, refurbishments, renovations, remodeling, and/or upgrading within the time period Franchisor reasonably specifies;
(11) Franchisee must pay a fixed sum of $15,000 to Franchisor (the "Transfer Fee");
(12) Franchisor's approval of the material terms and conditions of the Transfer, and Franchisor determines in Franchisor's Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee;
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, the transfer fee is a fixed sum of $15,000. The document specifies that the franchisee must pay Bee Organized a fixed sum of $15,000 as a transfer fee.
In addition to the transfer fee, the transferee is responsible for several other expenses. The transferee must cover the costs of improving, modifying, refurbishing, renovating, remodeling, and/or upgrading the Administrative Office to meet Bee Organized's current standards. These upgrades must be completed within a timeframe specified by Bee Organized.
Bee Organized also determines in its Reasonable Business Judgment that the price and terms of payment are not so burdensome as to be detrimental to the future operations of the Franchised Business by the transferee. This suggests that while the transfer fee is fixed, Bee Organized retains some discretion over the overall financial terms of the transfer to ensure the ongoing viability of the franchise.