What is the Crawlspace Medic transfer fee if transferring shares between existing owners?
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, a franchisee is required to pay a transfer fee if they wish to transfer their franchised business. If the transfer involves existing owners or adding a new shareholder that does not change the majority ownership, the transfer fee is $1,500. This fee is due upon application for the transfer.
This means that if you, as a Crawlspace Medic franchisee, decide to transfer shares of your business to your existing business partner, or bring on a new minority shareholder, you will have to pay Crawlspace Medic $1,500 for the transfer to be approved. This fee covers Crawlspace Medic's administrative costs associated with updating the franchise agreement and ensuring the new ownership structure complies with their standards.
It's important to note that the transfer fee differs if the transfer is to someone entirely new to the Crawlspace Medic brand or to an existing Crawlspace Medic franchise owner. In those cases, the fee is a percentage of the then-current franchise fee. Crawlspace Medic also retains the right to match any offer to purchase the business, which could impact a franchisee's ability to transfer their business to a party of their choosing.