To what extent are transfer fees collectable for an Annex Brands franchise transfer in Washington?

According to the 2025 Annex Brands Franchise Disclosure Document, transfer fees in Washington are collectable only to the extent that they reflect Annex Brands' reasonable estimated or actual costs in facilitating the transfer. This means that Annex Brands cannot charge an arbitrary or inflated transfer fee; the fee must be tied to the actual expenses they incur during the transfer process.

This provision protects franchisees in Washington from excessive transfer fees that might otherwise be imposed. It ensures that the fees are fair and directly related to the services Annex Brands provides during the transfer. This is particularly important for franchisees looking to sell their business, as it prevents the franchisor from hindering the sale with unreasonable costs.

For a prospective Annex Brands franchisee in Washington, this means that if they decide to transfer their franchise in the future, the transfer fee they pay must be justifiable based on the franchisor's actual costs. It would be prudent for a franchisee to request a detailed breakdown of these costs to ensure transparency and compliance with Washington state law. This also gives the franchisee leverage to negotiate the transfer fee if they believe it exceeds reasonable costs.