Under what condition are transfer fees collectable for a Beem Light Sauna franchise in Washington?

According to Beem Light Sauna's 2025 Franchise Disclosure Document, transfer fees for a franchise in Washington are collectable only to the extent that they reflect Beem Light Sauna's reasonable estimated or actual costs in completing the transfer. This means that Beem Light Sauna cannot charge an arbitrary or inflated transfer fee. The fee must be directly related to the expenses Beem Light Sauna incurs during the transfer process.

For a prospective Beem Light Sauna franchisee in Washington, this provides some protection against excessive transfer fees. If a franchisee decides to sell their franchise, the transfer fee charged by Beem Light Sauna must be justifiable based on actual costs. This could include legal fees, administrative costs, and the expenses associated with training a new franchisee.

This condition is specific to Washington due to the state's franchise laws, as indicated in Item 23. Franchisees should ensure they understand their rights under Washington's Franchise Investment Protection Act, as franchise agreement provisions are subject to state law. This protection helps ensure fairness and transparency in franchise transfers within Washington.