When is the Transfer fee due to Dickeys Barbecue Pit when transferring a franchise, and what are the possible amounts?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| running your | Restaurant. | automatic delivery to you of the revised Manuals and/or forms. | |
| Restaurant | |||
| Transfer | Greater of $15,000 or Dickey's reasonable costs and expenses. | 5 days prior to confirmation of transfer. | Payable to Dickey's when you transfer the franchise or your ownership. No charge for transfer to an entity which you control; we may defer, reduce or waive the fee for transfer of a distressed Restaurant. See footnote |
Source: Item 6 — OTHER FEES (FDD pages 25–34)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, a transfer fee is required when transferring a franchise or ownership. The fee is due 5 days prior to confirmation of the transfer. The amount is the greater of $15,000 or Dickey's reasonable costs and expenses.
Notably, Dickeys Barbecue Pit does not charge a transfer fee for transfers to an entity that the franchisee controls. Dickeys Barbecue Pit also retains the right to defer, reduce, or waive the transfer fee for a distressed restaurant.
Franchise transfer fees are common in the franchise industry. They typically cover the franchisor's administrative costs and training of the new franchisee. The specific amount and terms can vary widely across different franchise systems.