How is the Transfer Fee calculated for Best In Class Education Center, and when is it due?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT 2 | DUE DATE | REMARKS | |
|---|---|---|---|---|
| Customer Service Fee | 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. | |
| Conference Registration Fee | 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. | |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, a transfer fee is required for all transfers except permitted ones. The transfer fee is 60% of the then-current initial franchise fee. However, if the buyer is an existing franchisee, the transfer fee is reduced to 40% of the then-current initial franchise fee.
The transfer fee is due before the transfer of the franchise. Additionally, if Best In Class Education Center's broker finds the buyer, the franchisee must reimburse Best In Class Education Center for all commissions paid to the broker.
This means that if a franchisee decides to sell their Best In Class Education Center franchise to a new, unassociated party, they will need to pay a transfer fee equivalent to 60% of whatever the current initial franchise fee is at that time. If they sell to someone who already owns a Best In Class Education Center franchise, the fee is reduced to 40%. This fee must be paid in full before the transfer can be completed. Franchisees should also be aware that they may be responsible for covering broker commissions if the franchisor's broker is involved in finding the buyer.