What is the flat transfer fee for a Burros Fries franchise?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | A flat fee of $15,000 when you transfer your franchised business. If transferee came from our lead database, you may be required to pay the then-current fee to us plus any costs associated with applicable broker fees. | At the time the transferee signs the Franchise Agreement in effect | Payable to us when the Franchise Agreement is signed. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, a franchisee who transfers their franchised business will pay a flat transfer fee of $15,000. This fee is payable to Burros Fries when the transferee signs the Franchise Agreement.
However, there is a condition that could increase the transfer fee. If the transferee comes from Burros Fries's lead database, the franchisee may be required to pay the then-current fee to Burros Fries, in addition to any costs associated with applicable broker fees. This implies that the transfer fee could be higher than $15,000 if Burros Fries provided the lead that resulted in the transfer.
Transfer fees are common in franchising and are intended to compensate the franchisor for the work involved in approving a new franchisee, updating the franchise agreement, and providing training and support to the new owner. Franchisees should consider this fee when planning to sell their Burros Fries business.