What restrictions apply to transfer fees for a Bee Organized franchise in Washington?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Transfer Fees.
Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to the 2025 Bee Organized Franchise Disclosure Document, several restrictions apply to transfer fees for franchises purchased or operated in Washington state. Specifically, transfer fees are only collectable to the extent that they reflect Bee Organized's reasonable estimated or actual costs in effecting a transfer. This means that the transfer fee charged to a franchisee in Washington must be directly related to the expenses Bee Organized incurs during the transfer process.
This provision is part of a broader amendment to the Bee Organized franchise agreement that applies if the offer to sell a franchise is accepted in Washington, the purchaser is a resident of Washington, or the franchised business is located or operated in Washington. This amendment also includes clauses addressing conflict of laws, franchisee rights, and the site of arbitration, mediation, and litigation, ensuring that the Washington Franchise Investment Protection Act prevails in case of conflicts.
Furthermore, the amendment includes a "Franchisee Bill of Rights," stating that RCW 19.100.180 may supersede provisions in the franchise agreement concerning the franchisee's relationship with Bee Organized, particularly in areas of termination and renewal. This indicates that Washington state law provides additional protections and rights to franchisees beyond what is stipulated in the standard Bee Organized franchise agreement. Prospective franchisees in Washington should be aware of these state-specific protections and how they may impact the terms of their franchise agreement, especially regarding transfer fees and other key aspects of the franchise relationship.
In summary, if a Bee Organized franchise is purchased or operated in Washington, the transfer fees must be reasonable and reflect actual costs incurred by Bee Organized during the transfer. Franchisees should consult with legal counsel to fully understand their rights and obligations under Washington state law.