When is the Burros Fries resale fee due?
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, the resale fee is due 'On Demand.' This means that if a franchisee asks Burros Fries for assistance in finding a buyer for their business, the resale fee is payable at the time Burros Fries demands it.
The amount of the resale fee varies. Burros Fries states that the fee covers their costs and expenses, including the time committed by their personnel to assist in the resale process. This implies that the fee is not fixed but is calculated based on the specific assistance provided.
Prospective franchisees should be aware that 'On Demand' payment terms provide limited predictability. It is advisable to discuss with Burros Fries what factors influence the resale fee and to request an estimate or range of potential costs before engaging their assistance in selling the franchise. Understanding how the fee is determined can help a franchisee plan for this expense if they decide to sell their Burros Fries business.