What is the limitation on transfer fees collectable by Bambu in Washington?
Bambu 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 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, transfer fees in Washington state are limited to the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means that Bambu can only charge a transfer fee that accurately reflects the expenses they incur during the transfer process.
This limitation is in place to protect franchisees from excessive or arbitrary transfer fees. By tying the fee to actual or estimated costs, Washington law ensures that Bambu does not profit unfairly from franchise transfers. This provision aims to make franchise transfers more accessible and affordable for franchisees in Washington.
For a prospective Bambu franchisee in Washington, this means that the transfer fee should be justifiable and transparent. If the franchisee believes that the transfer fee is unreasonable or exceeds Bambu's actual costs, they may have grounds to challenge the fee under Washington law. It is important for franchisees to carefully review the transfer fee and request documentation supporting the costs included in the fee calculation.