Under what condition is there no transfer fee for a Carbones Pizzeria franchise?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (Column 1) Type of Fee1 | (Column 2) Amount | (Column 3) Due Date | (Column 4) Remarks |
|---|---|---|---|
| Transfer | $5,000 | Prior to consummation of transfer | Payable when you sell your franchise or your business entity or a majority interest in said entity. No charge if franchise transferred to a corporati |
Source: Item 6 — OTHER FEES (FDD pages 8–10)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, a transfer fee is generally required when selling the franchise or a majority interest in the business entity. However, there is an exception to this rule.
Specifically, Carbones Pizzeria will not charge a transfer fee if the franchise is transferred to a corporation that the franchisee solely owns. This provides an avenue for franchisees to restructure their business for legal or tax purposes without incurring the $5,000 transfer fee.
This condition is relatively common in franchising, as franchisors often want to facilitate internal restructuring while still maintaining control over who ultimately operates the franchise. Prospective Carbones Pizzeria franchisees should carefully consider this condition when planning their business structure and exit strategy.