What is the Buona transfer fee if the transferee is an existing franchisee?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ins an assignment of Franchisee's existing lease with the lessor's written consent or executes a new lease with the lessor for the premises of the Franchised Business and the remaining term of the assigned lease or the term of the new lease plus any renewals equals the franchise term hereunder; and
- (m) Except as provided for in Section 15.4 below, Franchisee shall pay to Franchisor
a transfer fee equal to seventy-five percent (75%) of the then-current Initial Franchise Fee if the Transferee is a new franchisee or fifty percent (50%) of the then-current Initial Franchise Fee if the Transferee is an existing franchisee of Franchisor. The transfer fees required cover Franchisor's administrative expenses in connection with the transfer. Franchisee shall pay a non-refundable deposit on the transfer fee in the amount of Five Thousand Dollars ($5,000.00) at the time Franchisee requests from Franchisor its written consent of the proposed transfer.
- 15.4 Transfer to a New Entity or Existing Fr
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the transfer fee depends on who the transferee is. If the transferee is a new franchisee, the transfer fee is 75% of the then-current Initial Franchise Fee. However, if the transferee is an existing Buona franchisee, the transfer fee is 50% of the then-current Initial Franchise Fee.
Regardless of who the transferee is, Buona requires a non-refundable deposit of $5,000 towards the transfer fee at the time the franchisee requests written consent for the proposed transfer. This deposit covers Buona's administrative expenses related to the transfer process.
However, there is an exception to the transfer fee. If the transfer is to a new entity established by the individual owners or among existing shareholders, partners, or members of the franchisee, the transfer fee is $1,500. This is a significantly lower fee than the standard transfer fees, but it applies only to specific internal restructuring scenarios.
Buona also requires that franchisees meet certain conditions to get the transfer approved. The franchisee must not be in default of their agreement, must fulfill all monetary obligations to Buona, and must agree to remain obligated under certain covenants. The transferee must also meet Buona's criteria for new franchisees.