Under what condition are transfer fees collectable by Bft?

According to Bft's 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees to the extent that they accurately reflect Bft's reasonable estimated or actual costs incurred during the transfer process. This means Bft can charge a transfer fee, but the amount must be justifiable based on the expenses Bft incurs.

This condition protects prospective franchisees by ensuring that Bft does not profit excessively from franchise transfers. The fees must be tied to actual costs, preventing Bft from imposing arbitrary or inflated charges. This provision aims to make the transfer process fairer and more transparent.

For a prospective Bft franchisee, this information is crucial when considering the possibility of selling their franchise in the future. It is important to understand what costs Bft includes when calculating the transfer fee to ensure they align with the 'reasonable estimated or actual costs' standard. Franchisees should request a detailed breakdown of these costs from Bft before agreeing to any transfer.