Franchise Transfer Fee: The Smallest Part of Selling
Three franchisors charge $5,000 to $12,500 to transfer a unit. The fee is the easy part: all three can match your buyer's offer, and one requires a remodel.
By FranchiseFeast EditorialPublished August 3, 2026Updated August 3, 2026
Figures on this page come from Franchise Disclosure Documents issued 2023 to 2027. At least one of those documents is now two or more years old, and franchisors reissue their FDD at least annually, so treat these numbers as a starting point rather than a current quote. Confirm anything you plan to rely on against the brand's current FDD. We are an independent publisher, not a franchise broker, and this is not legal or financial advice.
A transfer fee is what a franchisor charges when a unit changes owner, and it lands on a buyer choosing between an existing unit and a new build as well as on the seller. Across three Franchise Disclosure Documents, read in full and quoted below by Item number, it runs $5,000 to $12,500, sometimes with add-ons.
It is also the least consequential thing standing between a seller and a completed sale.
What the fee actually is
It is a one-time charge on a change of ownership, and it is a different thing from both the royalty and the initial franchise fee. Our royalty guide covers the ongoing charge; this is the one that appears once, at the exit.
| Brand | Transfer fee | Notes |
|---|---|---|
| Smoothie King | $7,500 to $12,500 | Plus $5,000 for Grand Opening Advertising. Reducible in some cases, including transfers to immediate family |
| Freshii | $10,000 | Due only on transfer of the agreement or a controlling ownership interest |
| Kung Fu Tea | $5,000 | Plus a separate $5,000 re-training fee. $10,000 under a multi-unit agreement |
Smoothie King’s own document explains why the range exists: the amount depends on whether you are transferring to an existing manager, franchisee or developer, and whether the transfer requires a new location.
The clause that can stop a sale you have already agreed
All three franchisors reserve a right of first refusal. In their own words:
Smoothie King: “Smoothie King can match any offer for the Unit.”
Freshii: “We may match any offer for your business or controlling ownership interest in you.”
Kung Fu Tea: “We can match any offer for your business.”
What the buyer is actually buying
Smoothie King’s Item 17 sets out the fullest list of conditions we found. Approval requires that the franchisor does not exercise its right of first refusal, the transferee qualifies, all monetary obligations are satisfied, the seller is in compliance, the transferee enters into a personal guaranty, the seller signs a release, confidentiality and non-competition provisions are complied with, the transfer fee is paid, and the transferee signs a new Franchise Agreement, remodels the premises and completes training.
Two of those deserve emphasis because they change the economics of a deal.
A new agreement, not the old one. A buyer of an existing unit may be signing the franchisor’s current terms rather than inheriting the seller’s. If the royalty, the marketing fee or the term have changed since the seller signed, the buyer gets today’s version. Freshii’s renewal provision shows how far terms can move: its successor fee is the full then-current initial franchise fee, not a discounted renewal rate.
A remodel. A refit is a real capital cost landing on the buyer at the moment of purchase, and it is the kind of thing that gets discovered late and reopens a negotiation.
The deadlines that apply if you die
Every agreement sets a period for an estate to transfer the interest, and the three we read differ by a factor of two.
| Brand | Deadline |
|---|---|
| Smoothie King | 6 months after death or mental incapacity |
| Freshii | 9 months (area development agreement, Section 11E, and franchise agreement, Section 13E); 60 days under the multi-unit site selection agreement, Section 5.3 |
| Kung Fu Tea | 12 months after death, 6 months after disability |
That is not a detail. It sets how long an executor has to find an approved buyer, complete the franchisor’s approval process and close, while running or winding down a business they may know nothing about. Anyone with a franchise in their estate should know their own number, and it is in their Item 17. What happens when a franchise owner dies works through the three deadlines and the one brand that exempts family transfers from consent.
The question none of them answers
Does the seller’s personal guarantee end when the sale completes?
Two of the three require the incoming buyer or its owners to sign a guarantee, and Kung Fu Tea’s Item 17 does not state one either way. None of the three states, in Item 15 or Item 17, whether the seller’s own guarantee is released. The answer lives in the guaranty exhibit attached to the franchise agreement, which is a separate contract.
This matters more than the transfer fee by orders of magnitude, because two of these brands disclose that a spouse may also be bound. Both Freshii and Kung Fu Tea carry the same special risk in their own words: a spouse must sign a document making them liable for all financial obligations even with no ownership interest, placing marital and personal assets at risk.
We are not going to tell you what your agreement says, because these differ and we have not read yours. We are telling you which document to open and which question to ask, and this is squarely a question for a franchise attorney rather than a broker.
One brand does answer it. F45 Training’s transfer conditions require the seller to remain liable for pre-transfer obligations, and if the business carries an SBA loan there is a second guarantee the franchisor cannot release at all.
The two provisions that matter more than the fee
Two companion pages go deeper on the parts of a transfer that actually decide whether a sale closes. The right of first refusal lets the franchisor match your buyer’s offer and take the unit, and none of the three documents on this page states how long it has to decide, though a fourth brand does state 30 days. The approval process sets out the nine conditions Smoothie King requires, two of which land on the buyer as real capital cost.
Questions to ask before you market the business
- What is the transfer fee, and what else is charged alongside it?
- Does the franchisor have a right of first refusal, and how many days does it have to exercise it?
- Will the buyer sign my agreement or the current form of agreement?
- Is a remodel required on transfer, and to what specification?
- What exactly must be satisfied before approval, and how long does approval typically take?
- Does my personal guarantee end at closing, and does my spouse’s?
- What deadline does my estate face if I die before selling?
- Will a franchise attorney and an accountant review the transfer provisions with me before I list?
Common questions
What is a franchise transfer fee?
A one-time charge the franchisor collects when a franchise changes hands, distinct from the ongoing royalty and from the initial franchise fee a new buyer pays. It generally covers the franchisor's cost of vetting and training the incoming owner. Across three disclosure documents we read, it ranged from $5,000 to $12,500, with add-ons.
How much is a franchise transfer fee?
It varies by brand and by what is being transferred. Smoothie King's 2026-27 FDD gives $7,500 to $12,500 plus $5,000 for grand opening advertising. Freshii's 2023 FDD gives $10,000. Kung Fu Tea's gives $5,000 plus a separate $5,000 re-training fee, or $10,000 under a multi-unit agreement.
Can the franchisor block the sale of my franchise?
It can require approval, and all three documents we read also reserve a right of first refusal, meaning the franchisor may match your buyer's offer and take the unit itself. None of the three states a deadline for that decision in Item 17, so the timing question belongs to the underlying agreement section and to your attorney.
Does the buyer inherit my franchise agreement?
Not necessarily. Smoothie King's conditions require the transferee to sign a new Franchise Agreement and remodel the premises. That means a buyer may be taking on current terms and a refit rather than stepping into the deal you signed, which is a material point for both sides of a negotiation.
What happens if I die before selling?
Each agreement sets a deadline for the estate, and they differ substantially. Smoothie King requires transfer within 6 months of death or mental incapacity. Kung Fu Tea allows 12 months for death and 6 for disability. Freshii gives 9 months under its area development and single-unit agreements but only 60 days under its multi-unit site selection agreement, so the table you read has to match the agreement signed.
Am I released from my personal guarantee when I sell?
None of the three disclosure documents we read answers that in Item 15 or Item 17. Two of the three require the incoming buyer or its owners to sign a guarantee; none states whether the seller's own guarantee ends. That is a question for a franchise attorney reading the actual guaranty exhibit, and it is one of the most important questions a seller can ask.
Sources
Every figure above traces to one of these sources (last checked August 3, 2026). Franchise numbers change with each FDD filing year; verify against the current FDD.
- Smoothie King Franchises, Inc. 2026-2027 Franchise Disclosure Document, issuance date April 8, 2026: Item 6 transfer fees of $7,500 to $12,500 plus $5,000 for Grand Opening Advertising, reducible in some circumstances including transfers to immediate family; Item 17 conditions for approval including that Smoothie King does not exercise its right of first refusal, the transferee enters a personal guaranty, the seller signs a release, and the transferee signs a new Franchise Agreement, remodels the premises and completes training; a Section 15.4 right to match any offer for the Unit; and a Section 15.3 requirement that an estate transfer the interest within 6 months of death or mental incapacity
- Freshii Development, LLC Franchise Disclosure Document, issuance date May 19, 2023: an Item 6 transfer fee of $10,000 due only on transfer of the agreement or a controlling ownership interest, a Successor Franchise Fee equal to the then-current standard initial franchise fee, an Item 17 right to match any offer for the business or controlling interest, a requirement to transfer to an approved party within 9 months of death or disability, and a Special Risks disclosure that a spouse must sign a document making them liable for all financial obligations even with no ownership interest. Third-party-hosted document; Item 1 confirms the entity as Freshii Development, LLC.
- KF Tea Franchising LLC (Kung Fu Tea) Franchise Disclosure Document issued April 20, 2023 and revised July 22, 2023, filed as a court exhibit in Case 3:23-cv-02860-X, Northern District of Texas: an Item 6 transfer fee of $5,000 plus a separate $5,000 re-training fee on transfer, $10,000 under a multi-unit agreement, an Item 17 right to match any offer for the business, a requirement that an estate assign to an approved buyer within 12 months of death and 6 months of disability, and a renewal fee of the greater of $10,000 or 25 percent of the then-current initial franchise fee; and a Special Risks disclosure headed Spousal Liability stating that a spouse must sign a document making them liable for all financial obligations under the franchise agreement even though the spouse has no ownership interest in the franchise. This copy is a litigation exhibit rather than a franchisor publication, is assembled through Item 19, and reflects the agreement as it read in 2023; confirm current terms in Kung Fu Tea's current Franchise Disclosure Document before relying on any figure here.
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