factual

Under what conditions are transfer fees collectable by Bft?

Bft Franchise · 2025 FDD

Answer from 2025 FDD Document

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)

What This Means (2025 FDD)

According to Bft's 2025 Franchise Disclosure Document, transfer fees are collectable to the extent that they reflect Bft's reasonable estimated or actual costs in completing a transfer. This means Bft can only charge a transfer fee that covers the expenses it incurs during the transfer process.

For a prospective franchisee, this implies that the transfer fee should be justifiable and directly related to the costs Bft bears for facilitating the transfer. It prevents Bft from imposing arbitrary or excessive transfer fees.

However, the FDD does not specify the exact types of costs that Bft might include in the transfer fee, nor does it provide a range for typical transfer fees. A prospective franchisee should request a detailed breakdown of potential transfer-related costs from Bft to ensure transparency and reasonableness.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.