Under what conditions are transfer fees collectable for a Best Brains franchise 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.
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You pay us a transfer fee in an amount of $2,500 for the transfer of either a Premium Learning Center or a Teacher Learning Center franchise; and
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, transfer fees for franchises in Washington are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in executing the transfer. This means Best Brains can only charge a transfer fee that covers the expenses they incur during the transfer process.
In general, Best Brains requires a $2,500 transfer fee for the transfer of either a Premium Learning Center or a Teacher Learning Center franchise. However, this fee is contingent on several conditions, including the franchisee offering Best Brains the opportunity to exercise their right of first refusal, the transferee meeting Best Brains' standards for franchisees, and the franchisee not being in default under the Franchise Agreement.
For franchisees in Washington, the standard $2,500 transfer fee may be adjusted if it exceeds Best Brains' actual costs. This provision is in place to comply with Washington state law, which aims to protect franchisees from unreasonable fees. Prospective franchisees in Washington should confirm with Best Brains what specific costs the transfer fee covers to ensure compliance with state regulations.