What does the Burros Fries resale fee cover?
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. |
| Resale Fee | Varies | On Demand | If you ask and we agree to assist you in finding a buyer for your Business, you pay us a fee to cover our costs and expenses, including time committed by our personnel. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the resale fee covers the costs and expenses Burros Fries incurs if they assist a franchisee in finding a buyer for their business. This includes the time committed by Burros Fries personnel to facilitate the sale. The exact amount of the resale fee varies.
If a Burros Fries franchisee decides to sell their franchise, they can request assistance from Burros Fries in finding a suitable buyer. If Burros Fries agrees to provide this assistance, the franchisee will be responsible for paying a resale fee. This fee is intended to compensate Burros Fries for the resources they expend in the process of finding a buyer and facilitating the transfer of the franchise.
Prospective franchisees should be aware that the resale fee is in addition to any other costs associated with selling a franchise, such as legal fees or broker fees. The FDD does not specify how the resale fee is calculated, only that it is intended to cover Burros Fries's costs and expenses. It is important for franchisees to understand the potential costs associated with selling their franchise before entering into a franchise agreement. Franchisees should inquire with Burros Fries about how the resale fee is determined to fully understand the potential expense.