factual

What is the condition for Big Air Trampoline Park to collect transfer fees in Washington?

Big_Air_Trampoline_Park Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to the 2025 FDD, Big Air Trampoline Park can only collect transfer fees in Washington if the fees reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means that Big Air Trampoline Park cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses Big Air Trampoline Park incurs during the transfer process.

For a prospective franchisee, this is beneficial because it protects them from being overcharged for a transfer. If a franchisee decides to sell their Big Air Trampoline Park franchise, they can be assured that the transfer fee will be fair and based on actual costs. This provision helps ensure transparency and prevents the franchisor from profiting excessively from franchise transfers.

It is important for franchisees to understand their rights under state laws like the Washington Franchise Investment Protection Act. This act aims to protect franchisees from unfair practices and ensures that certain provisions in the franchise agreement are fair and reasonable. Franchisees should carefully review the franchise agreement and any state-specific addenda to understand their rights and obligations regarding transfers and other key aspects of the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.