What condition regarding transfer fees applies to any transfer of a Devon Creek franchise?

According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee must pay a transfer fee as a condition of transferring their franchise. The standard transfer fee is equal to seventy-five percent of the then-current initial franchise fee. This fee covers Devon Creek's administrative costs and ensures that the new franchisee meets their standards.

However, the transfer fee can be lower in certain situations. If the transfer is to another existing Devon Creek franchisee in good standing, the transfer fee is reduced to fifty percent of the then-current initial franchise fee. This incentivizes current franchisees to expand within the Devon Creek system. Additionally, if the transfer involves adding a business entity or new shareholder/member to the franchisee's entity and does not change management control, the transfer fee is $1,500.00.

It is important for prospective Devon Creek franchisees to understand these transfer fee conditions, as they can significantly impact the financial implications of selling or restructuring their franchise. Franchisees should also note that these fees are subject to change, as they are tied to the then-current initial franchise fee. Therefore, it is crucial to review the most recent Franchise Disclosure Document and consult with Devon Creek directly to confirm the applicable transfer fees at the time of any proposed transfer.