Any franchise searchers that have already acquired a franchise here?

February 06, 2026

by a searcher from Columbia University - Columbia Business School in New York, NY, USA

I am in LOI negotiations with a seller of a multiple franchise location platform (2 to 4 franchise locations), and I am looking for both guidance on what costs to expect in the franchise acquisition (e.g., license transfer, training, leasing security deposits, etc.) and advice on how to properly negotiate the fees in the LOI (e.g., the seller/buyer split them 50/50, or any other approach). Any and all advice is appreciated!

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Reply by a searcher
from University of Redlands in Phoenix, AZ, USA

I have led 8 franchised brands and was a multi-unit franchisee with 131 locations so I may be able to help some. To be clear each franchised brand will have it's own requirements so the variance in these estimates below can be large. License Transfer: ("Transfer Fees") To clarify, there are two types of fees you may see during a transfer. One is a transfer fee usually paid by the seller. This is the norm. Many franchisors will also charge the buyer a mini-franchise fee and there are a variety of names for these. These are often around the same amount as the seller's transfer fee. These are generally $10k - $20k. I've seen them as low as $5k per location or territory and up to $25k. Some will make them a flat fee i.e. $15k. Other franchisors will do things like charge 1/3 of whatever the current initial franchise fee is. If a franchise fee for a brand new franchisee buying a new unit or territory is $51k then the transfer fee would be 17%. Others will charge a % of the sale price of the business i.e. 4%. A $2M sale would have a transfer fee or resale franchise fee of $80k in this example. Lastly, many brands have a transfer fee for the first unit or territory and then a reduced fee for the remaining. A 4-unit deal in this model could look like this: $15k + $5k + $5k + $5k. The FDD will detail this out, but it's important to also know that many franchisors will allow themselves to have a negotiated down transfer fee in order to bring in the new franchisee that they are excited about. I would start out by asking for it to be 1/3 of what the full amount is and negotiate from there. If the fee is $24k then tell them you will pay $8k. You can justify it by telling them that it's not like they'll have to train and coach 4 different franchisees for the 4 units. It's just one, saving them time, materials, and manpower###-###-#### Training: Most won't charge for training since it's included in the franchise transfer fee. However, some will. A training fee when charged is usually something like $7500. You can negotiate this down too. Where they may not budge as much is if you want detailed training down the road for other team members. For example, if you go do a 10-day initial training course and then 7 months later hire a Director of Ops who you want to go through the training then you'll likely pay $2 - $8k for that person, also negotiable. The reason many of these are negotiable is because they all benefit the franchisor. For example a well-trained franchisee and his or her team will generate more revenue and more royalties for the franchisor. Franchisees have negotiated me down on all of these fees at times, and I was happy to make it happen for them under key circumstances. And, as a franchisee I negotiated them down on my behalf. Also, before I get off of the subject of training, get all that you can for you and your team, ideally free. Ask for everything you want and more. The more well-developed you and your team are the easier it is to accelerate growth. And, one more thing on these fees, redline them in the initial franchise agreement and ask for what you want then. Be more aggressive than not, and give inches not miles when you make concessions. Leasing Security Deposits: This all depends but a couple of months is common, maybe as little as 1 month and likely not more than 4-5 but it's case by case and negotiable. Also, you can get what I call TI but is commonly called TIA, an allowance from the landlord for improvements aka remodeling. You can be aggressive here. That landlord has an open space and needs the 10-year lease badly. Much of their income and ability to get credit depends upon a certain amount of leases being executed and active, so they need you, likely more than you need them. You might want to ask for TIA equal to 7-10 months of rent for example. Then when you have invoices, and can prove the work is done you submit for the TIA and often get it quickly enough to pay the contractor without digging too deep into your pockets, however you also may have to pay something like half to the contractor and then the other half when done. I like FranFund for SBA loans. Their customer service is great and they manage the process very smoothly for the buying franchisee. Happy to help more if needed. And, if your business is anywhere near Phoenix, feel free to reach out. I have led 8 franchised companies as a franchisor, also as an operator overseeing company-onwed locations, and as a multi-unit franchisee. And, I created a franchised brand called Boost Home Healthcare. I own a consulting company currently, primarily helping investors with franchised operational diligence, GTM strategies and execution, interim leadership, project mgmt, franchise development (sale) and more. I am also open to getting back into an executive seat within or outside of franchising. Feel free to reach out via email or set up a call using the link below. Sean Kajcienski CEO - Principal Consultant Kaz Consulting Systems, LLC. redacted Cell: (###-###-#### Feel free to use this link to see when I am available, or to directly book a meeting with me https://calendly.com/sean-kazconsultingsystems/30min

Reply by a searcher
from University of Pennsylvania in San Francisco, CA, USA

I bought a home care franchise and i have not heard of other buyers negotiating a split of some of those fees though I don't see why you can't try for it. Those costs specifically are usually not huge compared to the size of the deal and the ongoing royalties you will be paying. Agreed FDD should have those details.

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