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:
- Right of first refusal - the franchisor can match your highest legitimate offer and buy your franchise
- 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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