Are transfer fees always payable when transferring a Fitstop franchise?

According to Fitstop's 2024 Franchise Disclosure Document, transfer fees are not always payable. Specifically, if the transfer is to a named beneficiary or to the spouse or an adult child of an individual, transfer fees are not payable. However, all such transfers are subject to Fitstop's conditions and requirements regarding transfers, including application, approval by Fitstop, payment of the application and training fees, the transferee's execution of the then-current Franchise Agreement, and Fitstop's Right of First Refusal where applicable.

Additionally, the transfer of a Fitstop franchise upon written notice by an individual or partnership to a corporation wholly-owned by the preexisting owner(s) does not require Fitstop's approval nor the payment of application or transfer fees. However, the transferring owner(s) must agree to remain personally responsible to Fitstop for the performance of the terms and conditions of the Franchise Agreement.

If the transfer is an assignment of the Franchise by an individual to a corporation in which you are and, so long as they remain the majority stockholder and the officer responsible for the full-time personal operation and supervision of the Franchise, and the transfer does not result in the cumulative transfer of over 50% of the interest or interests of the original owner or owners, the Application Fee will be charged without the Transfer Fee. However, Fitstop requires that the transferor(s) personally guarantee all obligations of the Franchise and reserve the right to reasonably reject such transfer.

These exceptions to transfer fees could significantly reduce costs for franchisees in specific situations, such as estate planning or corporate restructuring. However, franchisees should carefully review all conditions and requirements for transfers with Fitstop to ensure compliance and avoid unexpected fees or rejection of the transfer.