To what extent are transfer fees collectable from Bang Cookies franchisees in Washington?

According to Bang Cookies's 2024 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington, but with limitations. The Washington State Franchise Agreement Amendment specifies that Bang Cookies can only collect transfer fees to the extent that they reflect the franchisor's reasonable estimated or actual costs in facilitating the transfer.

This means that Bang Cookies cannot charge an arbitrary transfer fee. The fee must be tied to the actual expenses Bang Cookies incurs during the transfer process. This protects franchisees from excessive or unjustified fees when they sell or transfer their franchise.

For a prospective Bang Cookies franchisee in Washington, this is a beneficial provision. It ensures that transfer fees are fair and reasonable, based on actual costs, rather than being a source of profit for the franchisor. Franchisees should still carefully review the transfer fee details and ensure they align with the franchisor's documented costs.