Transfer Fee Benchmarks

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August 5, 2005 by Dane Carlson | 0 Comments

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:

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