What is the Crawlspace Medic transfer fee for a transfer to an individual or entity not new to the brand?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
--------------------------------| | | | Franchise | | | | Provision | Agreement | Summary | | m. | Conditions for franchisor approval of a transfer | Section 16.3 and 16.4 | Conditions include: our decision not to exercise our right of first refusal; transferee meets our then-current standards for qualifying franchisees; transferee signs our then-current form of Franchise Agreement, which may have materially different terms from your Franchise Agreement; transferee successfully complete our Initial Training Program; you have paid us and third-party creditors all amounts owed; you and the transferee sign a General Release in the form of Exhibit C to the Franchise Agreement; you shall subordinate any claims you have against the transferee to us; you will indemnify us for a period of 3 years following the transfer; our approval of the material terms and conditions of the transfer; payment of 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 brand, or forty percent (40%) of the then current franchise fee for a transfer to an existing owner within the system, or $1,500 for a transfer between existing owner or adding a new shareholder that does not change the majority ownership, or no payment for a transfe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 33–38)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, the transfer fee depends on who the franchise is being transferred to. If a franchisee transfers their franchise to an individual or entity that is new to the Crawlspace Medic brand, the transfer fee is sixty percent (60%) of the then-current franchise fee.
However, if the transfer is to an existing owner within the Crawlspace Medic system, the transfer fee is forty percent (40%) of the then-current franchise fee. There is also a $1,500 transfer fee for a transfer between existing owners or adding a new shareholder that does not change the majority ownership.
Notably, there is no transfer fee for a transfer to a spouse, parent, or child upon the death or permanent disability of the current franchisee. These transfer conditions are important for prospective franchisees to consider as they plan for the future of their Crawlspace Medic franchise and potential exit strategies.