To what extent are transfer fees collectable for a Bonchon franchise transfer in Washington?

According to Bonchon's 2025 Franchise Disclosure Document, transfer fees for franchises in Washington are collectable only to the extent that they reflect Bonchon's reasonable estimated or actual costs in completing the transfer. This means that Bonchon cannot charge an arbitrary or inflated transfer fee; the fee must be tied to the actual expenses Bonchon incurs during the transfer process.

Bonchon outlines specific conditions for assignment and sale of a franchise. The proposed assignee must apply for acceptance as a franchisee and provide Bonchon with requested information to assess their qualifications. The assignee may also be required to attend a personal interview at Bonchon's corporate office or another designated location. The franchisee may need to cover Bonchon's travel, lodging, meal, and personal expenses related to this meeting.

Additionally, the franchisee must furnish Bonchon with copies of any proposed and executed contract of assignment and related agreements. Any existing deficiencies of the restaurant must be corrected, and an inspection of the Bonchon restaurant must be arranged and paid for by the franchisee, including an On-Site Inspection Upon Transfer Fee of $250 per inspector per day, plus lodging, transportation, and food costs. The franchisee or transferee is also responsible for upgrading the Bonchon Restaurant to meet Bonchon's current standards and specifications within a reasonable timeframe.

Bonchon also specifies a transfer fee of $15,000, or a greater amount if necessary to cover reasonable costs and expenses associated with the transfer application, including costs related to the review, training, and legal and accounting fees. However, this transfer fee is waived if the assignee is a member of the franchisee's immediate family. These stipulations ensure that Bonchon can recover legitimate costs while maintaining standards and ensuring the suitability of the new franchisee.