To whom is the Burros Fries transfer fee payable?
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 transfer fee is payable to Burros Fries. The standard transfer fee is a flat $15,000, which is due when the transferee signs the Franchise Agreement.
However, there's a potential additional cost. If the buyer of the franchise comes from Burros Fries's lead database, the franchisee may have to pay Burros Fries the then-current fee, in addition to any broker fees associated with the transfer. This implies that Burros Fries might be involved in finding a buyer for the franchise, and the franchisee could incur extra expenses if that's the case.
It is important for a prospective franchisee to understand the conditions under which the transfer fee might increase, especially if relying on Burros Fries to find a buyer. Franchisees should clarify what the 'then-current fee' might be in such a scenario to avoid unexpected costs during a transfer.