When are transfer fees collectable for a Deck Medic franchise transfer?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
(11) Franchisee must pay a fixed sum of an amount equal to $10,000 to Franchisor (the "Transfer Fee");
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Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the standard transfer fee is collectable upon transfer of the franchise. Specifically, the franchisee must pay Deck Medic a $10,000 transfer fee. This fee is due on or before the effective date of the transfer.
However, the FDD includes an amendment specific to franchises purchased in Washington state. This amendment states that transfer fees are collectable only to the extent that they reflect Deck Medic's reasonable estimated or actual costs in effecting a transfer. This means that if a Deck Medic franchise is in Washington, the transfer fee may be less than $10,000 if the actual costs of the transfer are lower.
It is important for prospective franchisees to understand all conditions and costs associated with transferring a Deck Medic franchise, including the potential impact of state-specific amendments. Franchisees should consult with legal and financial advisors to ensure they fully understand the implications of the transfer fee and any other transfer-related expenses.