Under what condition is the Jersey Mikes transfer fee of $5,000 waived?
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' 2025 Franchise Disclosure Document, the transfer fee is not waived under any condition. The document states that upon the sale or alienation of the franchise, the franchisee must pay a non-refundable transfer fee of $5,000 to Jersey Mikes. This fee covers administrative costs, overhead, legal fees, accounting, and other company expenses associated with the transfer.
This transfer fee applies both to the sale of the franchise itself and to the transfer of interest in a Development Agreement. In the case of a Development Agreement transfer, the fee is $5,000 plus an additional $5,000 for each franchise agreement transferred along with it.
Prospective franchisees should note that this transfer fee is non-refundable, regardless of the circumstances of the transfer. It is important to factor this cost into any plans for potentially selling or transferring the franchise in the future. This is a fairly standard practice in the franchise industry, as transfer fees help franchisors cover their costs associated with vetting and onboarding new franchisees.