What transfer fee does Fly To Fit Franchise charge upon Franchisee transfer?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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ARTICLE 15. TRANSFERS
- 15.1 By Fly To Fit Franchise. Fly To Fit Franchise may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Fly To Fit Franchise may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Fly To Fit Franchise entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Fly To Fit Franchise at least 60 days prior notice of the propose
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must first obtain approval from Fly To Fit. As part of this approval process, Fly To Fit may impose certain conditions. One of these conditions is the payment of a transfer fee.
The transfer fee is set at $10,000, and the franchisee is also responsible for covering any broker fees and other out-of-pocket costs that Fly To Fit incurs during the transfer process. This means that the total cost of the transfer could exceed $10,000, depending on the specific expenses incurred by Fly To Fit.
In addition to the transfer fee, the proposed new franchisee must also meet Fly To Fit's standards for new franchisees and complete the franchise application process. The proposed franchisee must not be a competitor of Fly To Fit and must execute the then-current form of the franchise agreement. All monetary obligations to Fly To Fit and its affiliates must be paid, and the franchisee must not be in default or breach of the agreement. These conditions ensure that any transfer maintains the standards and financial stability of the Fly To Fit franchise system.