What fees are payable to Chocolate Fish Coffee if I sell my business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $10,000 plus any | Payable if you sell your business. | ||
| broker fees and other | |||
| out-of-pocket costs | |||
| we incur | |||
| An amount equal to | |||
| royalty fees and | |||
| Brand Fund | |||
| contributions for the | |||
| lesser of (i) 2 years | |||
| or (ii) the remaining | |||
| weeks of the | |||
| franchise term. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if you sell your business, you will be required to pay several fees. These include a flat fee of $10,000, plus any broker fees and other out-of-pocket costs that Chocolate Fish Coffee incurs during the sale.
Additionally, you must pay an amount equal to the royalty fees and Brand Fund contributions for either two years or the remaining weeks of the franchise term, whichever is less. This means that if your remaining franchise term is less than two years, you will only pay the equivalent of the royalty fees and Brand Fund contributions for that shorter period.
It's important for prospective franchisees to understand these fees, as they can significantly impact the profitability of selling their Chocolate Fish Coffee franchise. Franchisees should factor these costs into their financial planning and consider them when determining the sale price of their business.