Is the $5,000 transfer fee for a Big Apple Bagels franchise refundable, and under what circumstances?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
t. All of the following conditions must be met prior to or concurrently with the effective date of the transfer (unless otherwise specified):
- (1) the assignee, transferee or purchaser shall have been approved by Franchis
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the $5,000 transfer fee is not refundable under any circumstances. This fee is paid by the franchisee to Big Apple Bagels prior to the transferee attending the required training program.
This means that if a franchisee decides to sell their Big Apple Bagels franchise, they will need to find a buyer who is approved by the franchisor. Before the new buyer can attend training, the current franchisee must pay Big Apple Bagels a $5,000 transfer fee. This fee is non-refundable, regardless of whether the transfer is ultimately completed or not.
Franchise agreements often include transfer fees to compensate the franchisor for their time and expenses in approving a new franchisee and ensuring a smooth transition. The non-refundable nature of this fee means that the franchisee assumes the risk that the transfer may not go through after Big Apple Bagels has begun the approval process. This is a fairly standard practice in franchising, as it protects the franchisor from incurring costs for transfers that are started but not finalized.