What is the transfer fee for a Devon Creek franchise to an entity or individual new to the system?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| System-wide Convention | The then-current fee, $600 maximum per person to attend the System-wide Convention | Before the start of the event | To help offset our out-of-pocket expenses for meeting space, meals, audio visual rental, workbooks, speakers, etc. Does not include travel, lodging, or all meals. Location varies, these fees are payable to and imposed and collected by third parties. The System-wide Convention Fee shall be due to Franchisor whether or not you attend the |
| Transfer Fee | For transfers to: (i) an entity or individual that is new to the System, 75% of the then current Initial Franchise Fee; (ii) an entity or individual that is already an existing owner in the System, 50% of the then current Initial Franchise Fee; and (iii) an entity owned and controlled by the franchisee for convenience purposes without changing the majority ownership in the franchisee entity, $1,500. | Before we approve the transfer | Payable |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the transfer fee depends on the type of transfer. If a franchisee transfers to an entity or individual new to the Devon Creek system, the transfer fee is 75% of the then-current Initial Franchise Fee. For a transfer to an entity or individual already an existing owner in the Devon Creek system, the transfer fee is 50% of the then-current Initial Franchise Fee. If the transfer is to an entity owned and controlled by the franchisee for convenience without changing the majority ownership, the transfer fee is $1,500.
This fee is payable to Devon Creek before they approve the transfer. Item 17 of the FDD provides more information regarding transfer conditions.
Prospective franchisees should note that the 'then current Initial Franchise Fee' is subject to change, so the transfer fee could fluctuate. It would be prudent to confirm the current Initial Franchise Fee with Devon Creek before initiating a transfer to accurately calculate the transfer fee. Franchisees should also carefully review Item 17 of the FDD to understand all conditions and requirements related to transferring a franchise.