Under what condition are transfer fees collectable for a Bombs Away franchise in Washington?

According to Bombs Away's 2024 Franchise Disclosure Document, transfer fees are collectable in Washington to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer. This means that Bombs Away cannot charge an arbitrary or excessive transfer fee; the fee must be tied to the actual expenses Bombs Away incurs during the transfer process. This protection is specifically highlighted in the Washington Addendum.

For a prospective Bombs Away franchisee in Washington, this is a beneficial provision. It ensures that the transfer fees are fair and justifiable, preventing the franchisor from profiting excessively from franchise transfers. This can be particularly important if a franchisee needs to sell their business due to unforeseen circumstances.

However, franchisees should still carefully review the specific costs that Bombs Away includes in its transfer fee calculation to ensure they are indeed reasonable. It is advisable to seek legal counsel to fully understand your rights and obligations under Washington's franchise laws, especially regarding termination and renewal, as these are also subject to state statutes that may supersede the franchise agreement.