Is the transfer fee for a Brueggers Bagels franchise refundable?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer Fee.
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's 2025 Franchise Disclosure Document, the transfer fee is generally nonrefundable. The FDD specifies that the transfer fee must be fully paid before the closing of the transfer. However, the transfer fee will not apply if the transfer is to a corporation or other business entity the franchisee forms solely for the convenience of ownership.
If a franchisee or any owner desires to offer securities in a private offering, they must pay a non-refundable fee of 50% of Brueggers Bagels's then-current initial fee to reimburse them for costs and expenses associated with reviewing the proposed offering materials. This fee is in addition to the regular transfer fee.
It is typical in the franchise industry for transfer fees to be nonrefundable, as these fees are intended to cover the franchisor's administrative and legal costs associated with processing the transfer. Prospective Brueggers Bagels franchisees should be aware of this policy and factor it into their financial planning if they anticipate selling or transferring their franchise in the future.