When is the Transfer Fee due for a Punch King Fitness franchise?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $2,500 | Upon Franchisee's request for consent to the proposed transfer of franchise or Area Development Agreement | A transfer includes any sale, assignment, conveyance, giving away, pledging, mortgaging, or otherwise encumbering any interest in ownership in the Franchised Business, Franchise Agreement, or Area Development assets outside of the ordinary course of business or ownership rights. The Transfer Fee is non |
Source: Item 6 — OTHER FEES (FDD pages 10–16)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the Transfer Fee of $2,500 is due upon the franchisee's request for consent to the proposed transfer of the franchise or Area Development Agreement.
This fee is required when a franchisee seeks to transfer ownership or rights related to the franchise. The transfer can include various actions such as selling, assigning, conveying, giving away, pledging, mortgaging, or otherwise encumbering any ownership interest in the Franchised Business, Franchise Agreement, or Area Development assets outside the ordinary course of business or ownership rights.
It is important to note that the Transfer Fee is non-refundable, regardless of whether the transfer is ultimately approved. Prospective franchisees should factor this cost into their financial planning if they anticipate potentially transferring their franchise in the future.