Besides the transfer fee, what other costs is Crave Cookies Franchising entitled to upon a transfer?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
or any reason it sees fit. Accordingly, Franchisee shall neither conduct nor undergo a Transfer without providing Crave Cookies Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining Crave Cookies Franchising's consent. In granting any such consent, Crave Cookies Franchising may impose conditions, including but not limited to the following:
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, when a franchisee transfers their franchise, Crave Cookies Franchising is entitled to a transfer fee plus additional costs. Specifically, Crave Cookies Franchising receives a transfer fee of $10,000, but this fee does not apply in the State of Washington. Regardless of location, Crave Cookies Franchising is entitled to broker fees, legal fees, and other out-of-pocket costs it incurs during the transfer process.
This means that a franchisee looking to sell their Crave Cookies business needs to factor in not only the $10,000 transfer fee (if applicable based on location) but also any broker fees, legal fees, and other expenses that Crave Cookies Franchising might charge. These additional costs can vary depending on the complexity of the transfer and the professional services Crave Cookies Franchising uses.
For a prospective franchisee, this highlights the importance of understanding all potential costs associated with transferring a franchise. It would be prudent to inquire with Crave Cookies about the typical range of broker and legal fees associated with a transfer to better prepare for such an eventuality. This information can help in making informed financial decisions regarding the purchase and potential future sale of a Crave Cookies franchise.