Transfer Fee Benchmarks

Franchise Pundit:

So, you bought a franchise and it’s been successful for a few years and now you want to sell it. The franchisor reserves some influence and financial discouragement. The two biggest considerations given to the franchisor are:

  1. Right of first refusal – the franchisor can match your highest legitimate offer and buy your franchise
  2. Transfer fee – a fee you must pay to the franchisor for the privilege of transferring your licensing rights and obligations to another party

Some sample transfer fees:

  • Bartercard: 10% of sales price
  • Herman’s World of Sports: $12,500
  • Sears Carpet and Upholstery: $3,000 – $6,000 (depends on market size)
  • Stone Mountain Carpet Mill Outlet: $2,500
  • Screenz:  $5,000
  • Tax Centers of America: $1,000
  • Sports Clips: $25,000
  • Fantastic Sams: $20,000 or 10% of sales price (whichever is greater)
  • Hair Cuttery: $5,000 ($0 if franchisee for 5+ years)
  • Fastframe: 5-10% of purchase price

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