What is the limitation on transfer fees that Best Brains can collect from a franchisee 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 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 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 Best Brains can only charge a franchisee in Washington a transfer fee that accurately reflects the expenses Best Brains incurs during the transfer process.
This limitation protects franchisees from excessive or arbitrary transfer fees that do not correspond to the franchisor's actual costs. It ensures that the transfer fee is fair and justifiable, preventing Best Brains from profiting unduly from franchise transfers in Washington.
Prospective franchisees in Washington should be aware of this protection and ensure that any transfer fee charged by Best Brains is reasonable and well-documented. If a franchisee believes that the transfer fee is excessive, they may have grounds to challenge it under Washington state law.