What transfer fee does Better Blend charge if a franchisee transfers their franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
anchisee's taxes and other liabilities are paid. BBF may assign this purchase option to another party.
ARTICLE 15. TRANSFERS
- 15.1 By BBF. BBF may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and BBF may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that BBF entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing BBF at least 60 days prior notice of the proposed Transfer, and without obtaining BBF's consent. In granting any such consent, BBF may impose conditions, including, without limitation, the following:
- (i) BBF receives a transfer fee equal to $17,500 plus any broker fees and other out-ofpocket costs incurred by BBF;
- (ii) the proposed Transferee and its owners have comp
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, Better Blend may require a transfer fee. Specifically, Better Blend may impose conditions such as receiving a transfer fee equal to $17,500, in addition to any broker fees and out-of-pocket costs incurred by Better Blend.
Better Blend also stipulates other conditions that must be met before a transfer is approved. The proposed transferee must complete Better Blend's franchise application processes, meet the then-applicable standards for new franchisees, and be approved by Better Blend. The transferee cannot be a competitor of Better Blend.
Furthermore, the proposed transferee must execute Better Blend's current form of franchise agreement, which may contain materially different provisions than the original agreement. However, the new agreement will be amended so that the transferee is not required to pay an initial franchise fee. All owners of the proposed transferee must also provide a guaranty. The franchisee must have paid all monetary obligations to Better Blend and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business, and not be in default or breach of any agreement. Finally, the proposed transferee and their owners and employees must undergo any training that Better Blend may require.