When is the Crawlspace Medic transfer fee due upon application for transfer?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
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- If you wish to transfer your Franchised Business, you will be required to pay us a transfer fee. The fee to transfer a Franchised Business is $1,500 if transferring shares between the existing owners or adding a new shareholder that does not change the majority ownership; a fee equal to sixty percent (60%) of the then current franchise fee if transferring to an owner that is new to the brand; and a fee equal to forty percent (40%) of the then current franchise fee if transferring to an existing Crawlspace Medic franchise owner. This fee is to be paid upon application for transfer. We have the right to match any offer to purchase the business, and we can substitute c
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the transfer fee is due upon application for transfer. The amount of the transfer fee varies depending on the nature of the transfer.
If the transfer involves existing owners transferring shares between themselves or adding a new shareholder without changing majority ownership, the transfer fee is $1,500. However, if the transfer is to an owner new to the Crawlspace Medic brand, the fee is equal to sixty percent of the then-current franchise fee. If the transfer is to an existing Crawlspace Medic franchise owner, the fee is equal to forty percent of the then-current franchise fee.
It is important to note that Crawlspace Medic retains the right to match any offer to purchase the business, and they can substitute cash for any financing agreement. This means that even if a franchisee finds a buyer, Crawlspace Medic has the option to step in and purchase the franchise themselves under the same terms. Franchisees should consider these factors when planning for a potential transfer.