To what extent are transfer fees collectable for an Atwell Suites franchise transfer in Washington?

According to Atwell Suites's 2025 Franchise Disclosure Document, transfer fees for franchises in Washington are collectable, but with limitations. The fees must reflect Atwell Suites's reasonable estimated or actual costs associated with processing the transfer. This provision is part of an amendment to the standard Atwell Suites license agreement to comply with the Washington Franchise Investment Protection Act.

This means that Atwell Suites cannot charge arbitrary or inflated transfer fees. The fees must be justifiable based on the expenses Atwell Suites incurs while facilitating the transfer, such as legal and administrative costs for reviewing the new franchisee's qualifications and updating the franchise agreement. This protection is afforded to franchisees due to the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair practices.

Prospective Atwell Suites franchisees in Washington should be aware of this provision, as it ensures that transfer fees are reasonable and tied to actual costs. If a franchisee believes the transfer fees are excessive, they may have grounds to challenge them under Washington law. It is important to carefully review the transfer fee structure and understand the costs involved before agreeing to a transfer.