conditional

What is the condition regarding transfer fees collectable by Annex Brands in Washington?

Annex_Brands Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (6) Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 23 — Receipts (FDD pages 110–299)

What This Means (2025 FDD)

According to Annex Brands' 2025 Franchise Disclosure Document, in the state of Washington, the transfer fees that Annex Brands collects must reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means Annex Brands can only charge franchisees a transfer fee that accurately represents the expenses they incur during the transfer process.

This condition protects prospective Annex Brands franchisees in Washington from being charged excessive or arbitrary transfer fees. The fees must be tied to actual costs, ensuring fairness and transparency in the transfer process.

It is important for potential franchisees to understand this regulation, as it can impact the overall cost of buying or selling an Annex Brands franchise in Washington. Franchisees should request a detailed breakdown of the estimated or actual costs associated with the transfer to ensure the fee is reasonable and justified.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.