What is the fee to transfer a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
e Brand Fund. | |
| Type of Fee 1 | AMOUNT 2 | DUE DATE | REMARKS |
|---|---|---|---|
| Customer Service | Up to $500 per year (not currently imposed) | 10 days after invoice | Imposed to cover our costs if we implement a customer satisfaction program, such as collecting and evaluating data and feedback from customers to determine their satisfaction with your Center and identify potential modifications to the System to improve customer satisfaction. |
| Fee | |||
| Conference | Up to $350 per person per conference | 10 days after invoice | We may hold conferences to discuss matters affecting franchisees. Attendance is mandatory unless we designate attendance as optional or we waive your obligation to attend based on showing of good cause. |
| Registration Fee | |||
| Gift Card Program Fees | Up to $50 per month per Center (not currently imposed) | 10 days after invoice or as we otherwise specify | You must participate in any gift card program we establish and pay required fees and contributions to us or a third party to administer the program. |
| Product Purchases | Varies depending on item purchased (not currently imposed) | 10 days after invoice | We may serve as a System supplier for goods and services you must purchase. If this occurs, we will provide you with a price list upon request. |
| Relocation Fee | $1,000 for each new site you propose plus Travel Expenses | At time new site proposed | You may not relocate your Center without our approval. If we allow you to relocate, you must pay us the $1,000 fee and reimburse all Travel Expenses we incur to visit new sites you propose. We refund 75% of the fee if we reject the site. |
| Satellite Office Fee (per office) | [If Office Located Inside Your Center Territory] $5,000 per office [If Office Located Outside Your Center Territory] $22,500 per office | At time you sign Satellite Office Addendum | See Note 4 for a description of the other fees you pay relating to a Satellite Office. |
| Renewal Fee | $2,500 | At time you sign renewal agreement | Imposed if you renew your franchise rights by signing a renewal Franchise Agreement. |
| Transfer Fee | 60% of then-current initial franchise fee (reduced to 40% if buyer is an existing franchisee) | Before Transfer | You pay the transfer fee for all Transfers other than Permitted Transfers. If our broker finds the buyer, you must also reimburse us for all commissions we pay the broker. |
| Audit Fee | Actual cost of audit (plus Travel Expenses for audit team) | 10 days after invoice | Imposed if audit (a) is required because you fail to submit required data or reports in a timely manner or (b) reveals you understated sales by 3% or more. |
| Late Fee | $100 plus default interest at lesser of (a) 15% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law | 10 days after invoice | If our debit of your account is rejected or your check is returned for insufficient funds, we may charge (in addition to the late fee) an NSF fee of $50 per incident. Default interest is limited to 10% per annum in California. |
| Noncompliance fee | $500 per incident | Upon demand | Imposed if you breach a mandatory standard or operating procedure (including submission of required reports) and fail to cure within the time period we require. We may impose an additional $100 fee every 48 hours the breach remains uncured after we impose the initial fee. We will deposit these fees into the Brand Fund. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to the 2025 Best In Class Education Center Franchise Disclosure Document, a franchisee who transfers their franchise must pay a transfer fee. This fee is 60% of the then-current initial franchise fee. However, if the buyer is an existing Best In Class Education Center franchisee, the transfer fee is reduced to 40% of the then-current initial franchise fee. This fee must be paid before the transfer is completed.
In addition to the transfer fee, if Best In Class Education Center's broker finds the buyer, the franchisee must also reimburse Best In Class Education Center for all commissions they pay the broker. The FDD also defines what constitutes a "Transfer". A transfer includes the transfer or assignment of the Franchise Agreement, the Center's assets, an ownership interest in the entity that is the franchisee, or the franchised business.
It is important to note that these transfer fees do not apply to "Permitted Transfers." A "Permitted Transfer" is defined as a transfer between existing owners, or by the owners to a new business entity that is 100% owned and controlled by the transferring owners. However, this exception does not apply if the Managing Owner owns less than 20% of the franchised business after the transfer.