Under what condition are transfer fees collectable by Apricot Lane in Washington?

According to Apricot Lane's 2025 Franchise Disclosure Document, transfer fees are collectable in Washington state only to the extent that they accurately represent Apricot Lane's reasonable estimated or actual costs incurred during the transfer process. This means Apricot Lane cannot charge arbitrary or inflated transfer fees; the fees must be directly tied to the expenses they incur while facilitating the transfer of the franchise to a new owner.

For a prospective Apricot Lane franchisee in Washington, this provides some protection against excessive transfer fees. If a franchisee decides to sell their business, the transfer fees charged by Apricot Lane must be justifiable based on actual costs. This ensures that the fees are fair and reasonable, rather than a source of additional profit for the franchisor.

It is important for potential franchisees to understand what constitutes "reasonable estimated or actual costs." This could include legal fees, administrative expenses, training costs for the new franchisee, and other direct costs associated with the transfer. Franchisees should request a detailed breakdown of these costs from Apricot Lane to ensure transparency and avoid disputes. This provision in the FDD aims to protect franchisees from unfair financial burdens during the transfer process, aligning with Washington state's franchise laws.