Transfer fee benchmarks

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

Sample Transfer fees:

FOOD:

• Pizza Factory: $12,000
• Quizno’s: $5,000
• Dominic’s of New York: $1,000 + 6% of sales price
• Submarina: $1,000
• Cheeburger Cheeburger: $12,250
• Pizza Patron: $5,000
• The Dugout: $5,000
• Arby’s: $13,500
• Doc Green’s Gourmet Salad: negotiated at time of sale
• Jerq’zine:  $10,000
• Original Hamburger Stand: $250
• Sub Station II: $5,000
• Steak-Out: $18,750
• Fazoli’s: Reaonable attorney, accounting, training and other related costs

OTHER:

• 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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