What is the limitation on transfer fees collectable by Big O Tires in Washington?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer Fee: $5,000.00 per store
The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in Washington:
This release does not apply with respect to any claims under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the standard transfer fee is $5,000 per store. However, a specific provision applies to assignors, assignees, and guarantors in Washington state.
The FDD states that the general release of claims does not extend to claims that the creditor is unaware of, which would have materially affected their settlement with the debtor. More specifically, for those in Washington, the release does not apply to claims under the Washington Franchise Investment Protection Act, RCW 19.100, and its associated rules.
In essence, while Big O Tires charges a $5,000 transfer fee, franchisees in Washington retain their rights under the Washington Franchise Investment Protection Act, meaning that the standard release signed during a transfer does not waive those specific rights. This ensures that Washington franchisees maintain legal recourse related to franchise investment protections, regardless of the transfer agreement.