Business Opportunities Weblog

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:

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

In Franchising | 0 Comments