Is the Burros Fries resale fee a fixed amount?
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 the 2024 Burros Fries Franchise Disclosure Document, the resale fee is not a fixed amount. The table in Item 6 indicates that the resale fee "Varies." If a Burros Fries franchisee requests assistance from Burros Fries in finding a buyer for their business, they must pay a fee to cover Burros Fries' costs and expenses, including the time committed by their personnel. This fee is payable to Burros Fries and is due on demand.
This means the amount a franchisee will pay for the resale fee is not predetermined and can fluctuate based on the specific assistance Burros Fries provides during the resale process. The costs will likely depend on the complexity of the sale, the time spent by Burros Fries personnel, and any other associated expenses incurred by Burros Fries.
Prospective franchisees should consider this variable fee when planning for a potential future sale of their Burros Fries franchise. It would be prudent to discuss with Burros Fries what factors typically influence the resale fee and to request an estimate or range of potential costs to better understand the financial implications of selling the franchise with Burros Fries' assistance.