What is the limitation on transfer fees collectable by Floors To Go?

According to the 2025 Floors To Go Franchise Disclosure Document, transfer fees are limited to the franchisor's reasonable estimated or actual costs associated with facilitating the transfer. This means Floors To Go can only charge a fee that reflects the expenses they incur while processing the franchise transfer.

For a prospective franchisee, this is important because it prevents Floors To Go from arbitrarily inflating transfer fees. The fees must be tied to tangible costs, such as legal and administrative work, training of the new franchisee, and other related expenses. This provides some protection against excessive fees that could make transferring the franchise financially unfeasible.

This practice is fairly standard in the franchise industry, as many franchise agreements stipulate that transfer fees must be reasonable and reflect actual costs. However, it is crucial for a potential Floors To Go franchisee to understand what specific costs are included in the transfer fee to ensure transparency and avoid disputes during a transfer.