What is the Buona transfer fee if the transferee is a new 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 Franchisee. If a proposed transfer is (i) individual owners assigning this Agreement to a newly established Entity pursuant to Section 6.1 of this Agreement; or (ii) among existing shareholders, partners or members of Franchisee the transfer fees shall be One Thousand Five Hundred Dollars
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 whether the transferee is a new or existing franchisee. If the transferee is a new franchisee, the transfer fee is equal to seventy-five percent (75%) of the then-current Initial Franchise Fee. If the transferee is an existing Buona franchisee, the transfer fee is fifty percent (50%) of the then-current Initial Franchise Fee.
Buona also requires a non-refundable deposit of Five Thousand Dollars ($5,000.00) on 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, if the transfer is between individual owners assigning the agreement to a newly established entity or among existing shareholders, partners, or members of the franchisee, the transfer fees are One Thousand Five Hundred Dollars ($1,500.00). In such cases, Buona reserves the right to waive certain conditions or requirements and may require the principals of the transferee to execute a Guaranty and Assumption of Franchisee's Obligations.