To what extent are transfer fees collectable from an Apricot Lane franchisee in Washington?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
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 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, transfer fees are collectable from a franchisee in Washington to the extent that they accurately represent the franchisor's reasonable estimated or actual costs incurred during the transfer process. This means Apricot Lane can only charge a transfer fee that covers the real expenses they have when a franchise is sold or transferred to a new owner.
This provision protects franchisees in Washington from excessive or arbitrary transfer fees. Apricot Lane cannot profit from franchise transfers beyond recovering their actual costs. This ensures that the transfer fees are fair and directly related to the services and expenses associated with the transfer.
For a prospective Apricot Lane franchisee in Washington, this is a beneficial protection. It is important to carefully review the transfer fee details in the Franchise Agreement to ensure that the fees charged are indeed reasonable and reflect actual costs. If the fees seem excessive or unjustified, a franchisee can challenge them based on this disclosure.