What is the transfer fee a Jersey Mikes franchisee must pay upon the sale of the franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
y and its representative.
- 13 Transfer Fee. Upon sale or other alienation of the franchise by you, you must pay to Company a non-refundable transfer fee equal to $5,000 in lieu of payment of any franchise fee or other charge. The transfer fee is for a dministrative costs, overhead, legal fees, accounting and othe r Company expenses associated with the transfer. Company requires the purchaser of the unit and two other designees to complete Company's then current training program. Upon the Transfer of your interest in a Development Agreement, you must pay Company a transfer fee equal to $5,000, plus $5,000 for each franchise agre
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee upon the sale or other transfer of the franchise. This fee is $5,000 and is non-refundable. Jersey Mikes specifies that this transfer fee covers administrative costs, overhead, legal fees, accounting, and other expenses the company incurs during the transfer process.
In addition to the transfer fee, Jersey Mikes requires the purchaser of the unit and two other designees to complete the company's current training program. This ensures that the new owner and key personnel are properly trained in the Jersey Mikes system.
If a franchisee is transferring a Development Agreement, the transfer fee is $5,000, plus an additional $5,000 for each franchise agreement transferred along with it. This fee structure applies specifically to the transfer of development rights, not just individual franchise units.