Who is responsible for paying the Fitstop Transfer Fee if agreed upon between the parties?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
or by operation of law), directly, indirectly, or contingently any interest in this Franchise without our express written consent, and then only in accordance with the express limitations of this Section.
- 15.2 You shall pay an Assignment/Transfer Application Fee ("Application Fee") of $500.00 to us per application to assign or transfer and then upon approval,
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the responsibility for paying the Transfer Fee can be determined by agreement between the parties involved in the transfer. Specifically, the document states that either the transferring franchisee or the incoming franchisee can agree to pay the $25,000 Transfer Fee.
This flexibility allows for negotiation between the seller and the buyer of the Fitstop franchise. The agreement on who pays the fee can be a point of negotiation during the transfer process. It is important for both parties to clearly document their agreement to avoid any disputes later on.
It is fairly common in franchising for the transfer fee to be negotiable, although the default responsibility often falls on the seller. Prospective Fitstop franchisees should carefully consider this aspect when planning for a potential sale or purchase of a franchise, as it can significantly impact the financial implications of the transaction.