What transfer fee do I pay Crawlspace Medic if I transfer my franchise to an existing Crawlspace Medic owner?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchisor; and
- 16.3.9. If consent is required, the lessor of the Franchised Business's premises consents to the assignment or further sublet of the premises to the transferee.
- 16.4. Transfer Fee. As a condition to any Transfer, Franchisee shall pay Franchisor (i) a transfer fee equal to sixty percent (60%) of the then current franchise fee for a transfer to an individual or entity that is new to the system; (ii) a transfer fee equal to forty percent (40%) of the then current franchise fee for a transfer to an individual or entity that is an existing owner within the system; (iii) a transfer fee of one thousand five hundred dollars ($1,500) for transfers of ownership interest among existing shareholders or members, or to add a new shareholder or member, of the Franchisee entity and such transfer does not change management control of the Franchisee enti
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to Crawlspace Medic's 2024 Franchise Disclosure Document, the transfer fee for transferring a franchise to an existing owner within the Crawlspace Medic system is 40% of the then-current franchise fee. This fee is part of the conditions that must be met for Crawlspace Medic to approve the transfer of a franchise.
This means that if you decide to sell your Crawlspace Medic franchise to someone who already owns a Crawlspace Medic franchise, you will need to pay this transfer fee to the franchisor. The amount will depend on what the current franchise fee is at the time of the transfer. For example, if the current franchise fee is $50,000 at the time of transfer, the transfer fee would be $20,000 (40% of $50,000).
It's important to note that this transfer fee is just one of the conditions for the transfer. Crawlspace Medic also needs to approve the transfer, and the transferee must meet certain qualifications. Additionally, if you finance any part of the sale, those obligations must be subordinate to the transferee's obligations to Crawlspace Medic. This fee does not apply to transfers of ownership interest among existing shareholders/members or transfers to a spouse, parent, or child upon death/permanent disability.