How is the transfer fee calculated for a Brueggers Bagels franchise under the Franchise Agreement?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Transfer Fee (Note 6) | Under the Franchise Agreement, 50% of the then-current initial franchise fee for each Bakery being transferred Under the License Agreement, 50% of the then-current initial license fee | With request for approval of transfer | Payable if you propose to sell or transfer your business (or partial ownership interest). |
The transfer fee will not apply if the transfer is to a corporation or other business entity you form solely for the convenience of ownership.
The transfer fee is nonrefundable and must be fully paid before the closing of the transfer.
If you or any Owner desires to offer securities in a private offering, in addition to the regular transfer fee, you must pay a non-refundable fee of 50% of our then-current initial fee to reimburse us for our costs and expenses associated with reviewing the proposed offering materials.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, the transfer fee under the Franchise Agreement is 50% of the then-current initial franchise fee for each Bakery being transferred. This fee is payable when you request approval for the transfer.
However, the transfer fee will not apply if the transfer is to a corporation or other business entity you form solely for the convenience of ownership. The transfer fee is nonrefundable and must be fully paid before the closing of the transfer.
Additionally, if you or any Owner desires to offer securities in a private offering, you must pay a non-refundable fee of 50% of Brueggers Bagels' then-current initial fee to reimburse them for their costs and expenses associated with reviewing the proposed offering materials. This fee is in addition to the regular transfer fee.