What is the maximum transfer fee that Carls charges per Franchised Restaurant?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
, as determined by CJR, must complete all remodel, renovations, re-image, maintenance and facility upgrades to modernize and conform the Franchised Restaurant to the image of the System for new franchised restaurants.
- (6) Franchisee, all individuals who executed this
Source: Item 22 — CONTRACTS (FDD page 80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, when a franchisee transfers their franchise to a new owner, Carls charges a transfer fee. The transfer fee compensates Carls for reviewing the transfer application. The maximum transfer fee is $2,500 per Franchised Restaurant.
This fee is nonrefundable, meaning that the transferor will not get the money back even if the transfer is not approved or completed. The transferor, who is the current franchisee, is responsible for paying this fee to Carls.
It's important to note that this is the maximum fee, and Carls has the discretion to charge a lower amount or waive the fee entirely. However, franchisees should be prepared to pay up to $2,500 per restaurant when transferring ownership.