What transfer fee does Better Blend charge if a Franchisee wants to transfer 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 to a new owner, Better Blend may require a transfer fee. This fee is $17,500, in addition to any broker fees and out-of-pocket costs that Better Blend incurs during the transfer process.
Better Blend outlines several conditions that must be met before a transfer is approved. The potential new franchisee must complete Better Blend's application process and meet the standards for new franchisees. The transferee cannot be a competitor of Better Blend. The new franchisee must also sign Better Blend's current franchise agreement, although they will not be required to pay an initial franchise fee. All owners of the proposed transferee must provide a guaranty, and the current franchisee must have paid all outstanding financial obligations to Better Blend, its affiliates, and any relevant lessors, vendors, suppliers, or lenders. Finally, the proposed transferee and their employees must undergo any training that Better Blend requires.
These conditions and fees are typical in franchising, as the franchisor wants to ensure that any new franchisee is well-qualified and that the transfer process does not negatively impact the brand. The transfer fee compensates Better Blend for their time and expenses in reviewing and approving the transfer, as well as updating the franchise agreement and providing training to the new franchisee. Prospective franchisees should carefully consider these requirements and fees when evaluating the potential resale value of a Better Blend franchise.