What is the 'Franchisor's Assignment Fee' in the context of a Beverly Anns Cookie franchise transfer?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto hereby covenant, promise, and agree as follows:
in this Agreement, including that New Franchisee sign Franchisor's current form of franchise agreement together with all exhibits and attachments thereto ("New Franchise Agreement"), contemporaneously
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- Payment of Fees. In consideration for the Requested Assignment, Former Franchisee acknowledges and agrees to pay Franchisor the Transfer Fee, as required under the Franchise Agreement ("Franchisor's Assignment Fee").
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- Assignment and Assumption. Former Franchisee hereby consents to assign all of its rights and delegate its duties with regard to the Former Franchise Agreement and all exhibits and attachments thereto from Former Franchisee to New Franchisee, subject to the terms and conditions of this Agreement, and conditioned upon New Franchisee's signing the New Franchise Agreement pursuant to Section 5 of this Agreement.
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- Consent to Requested Assignment of Franchised Business. Franchisor hereby consents to the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon receipt of the Franchisor's Assignment Fee from Former Franchisee and the mutual execution of this Agreement by all parties. Franchisor waives its right of first refusal set forth in the Former Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the 'Franchisor's Assignment Fee' is a fee that the former franchisee is required to pay to Mobile Cookie Company, LLC, the franchisor, in consideration for the assignment of the franchise to a new franchisee. This fee is required under the terms of the Franchise Agreement.
The franchisor's consent to the transfer of the franchise is contingent upon receipt of this assignment fee from the former franchisee. Additionally, the former franchisee must ensure that the new franchisee signs the franchisor's current form of franchise agreement, including all exhibits and attachments.
This fee is paid by the former franchisee to the franchisor, Mobile Cookie Company, LLC, in exchange for allowing the transfer of the franchise to a new owner. It is important to note that the franchisor also waives its right of first refusal, which it may have had under the original franchise agreement, allowing the transfer to proceed without the franchisor first having the option to buy back the franchise.