What transfer fee does Crave Cookies Franchising receive upon a transfer of the franchise?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
all amounts owed to Crave Cookies Franchising.
ARTICLE 15. TRANSFERS
- 15.1 By Crave Cookies Franchising. Crave Cookies Franchising may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Crave Cookies Franchising may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Crave Cookies Franchising entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Franchise Fees are not refundable, as stated in Section 4.1 of this agreement. Franchisee may not transfer an undeveloped territory. Crave Cookies Franchising may reject any proposed transfer for 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' 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to a new owner, Crave Cookies Franchising has the right to impose certain conditions. One of these conditions is the payment of a transfer fee.
The standard transfer fee is $10,000, in addition to any broker fees, legal fees, and other out-of-pocket costs that Crave Cookies incurs during the transfer process. However, the FDD stipulates an exception: the $10,000 fee is waived for franchises located in the State of Washington. Even in Washington, the franchisee is still responsible for covering any broker fees and other out-of-pocket expenses incurred by Crave Cookies.
This transfer fee covers Crave Cookies' costs associated with evaluating and approving the transfer, including reviewing the proposed new franchisee's qualifications and ensuring they meet the brand's standards. It is common practice in franchising to charge a transfer fee to compensate the franchisor for their time and expenses related to the transfer process. The prospective franchisee should be aware of these costs when considering the purchase of an existing Crave Cookies franchise.