Can Best Brains charge transfer fees that exceed their actual costs in Washington?
Best_Brains 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, Washington state law impacts the collection of transfer fees. Specifically, Best Brains can only collect transfer fees from franchisees in Washington to the extent that the fees reflect the actual or reasonably estimated costs Best Brains incurs during the transfer process.
This means that Best Brains cannot inflate transfer fees to generate a profit. The fees must be directly related to the expenses Best Brains incurs for things like reviewing the potential new franchisee, updating paperwork, and providing any necessary training or support during the transfer.
This regulation protects franchisees in Washington from being charged excessive or arbitrary transfer fees. It ensures that the fees are fair and directly tied to the services and costs associated with the transfer process. Prospective franchisees in Washington should carefully review the transfer fee details in the Best Brains franchise agreement and ensure they comply with this state law.