What is the condition for Deck Medic to collect transfer fees from a franchisee?

According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee must pay a $10,000 transfer fee to the franchisor as a condition for approval of a transfer. This fee is required when the franchisee seeks to transfer their franchise to another party.

Specifically, Deck Medic requires that the franchisee pay this fee before the transfer can be completed. This condition is outlined in Article 14.C.(11) of the franchise agreement. The transfer itself is defined broadly, including assignments, sales, mergers, and other changes in ownership or control.

This transfer fee is a fixed sum, meaning it does not vary based on the performance or size of the franchise being transferred. It is a standard cost associated with the process of transferring ownership and rights to a new franchisee. Prospective franchisees should factor this fee into their financial planning if they anticipate selling their Deck Medic franchise in the future.

It's important to note that the transfer is also contingent on other conditions, such as the transferee meeting Deck Medic's standards for franchisees and complying with all applicable laws. The franchisor's approval of the transfer does not waive their right to demand compliance with the agreement from the transferee.