For Crown Gold Exchange franchises in Washington, under what condition are transfer fees collectable?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Crown Gold Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining Crown
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a transfer fee is collectable when a franchisee seeks to transfer their franchise to another party and requires Crown Gold Exchange's consent.
Crown Gold Exchange may impose conditions when granting consent for a transfer. One of these conditions is the payment of a transfer fee. This fee amounts to $10,000, in addition to any broker fees and other out-of-pocket costs incurred by Crown Gold Franchising.
This means that if a Crown Gold Exchange franchisee in Washington wants to sell their franchise, they must first get approval from Crown Gold Exchange. As part of this approval process, Crown Gold Exchange can require the franchisee to pay a $10,000 transfer fee, plus cover any additional expenses Crown Gold Exchange incurs during the transfer process. This fee compensates Crown Gold Exchange for their time and effort in reviewing and approving the transfer, and ensures that the new franchisee meets their standards.