To what extent are transfer fees collectable from a Bonchon franchisee in Washington?

According to Bonchon's 2025 Franchise Disclosure Document, transfer fees in Washington are collectable but with limitations. Specifically, Bonchon can only collect transfer fees to the extent that they reflect the franchisor's reasonable estimated or actual costs in executing the transfer. This means Bonchon cannot charge an arbitrary or inflated transfer fee; it must be tied to the real expenses Bonchon incurs during the transfer process.

Bonchon outlines several conditions that must be met for a transfer to be approved. These include the proposed assignee applying for acceptance as a franchisee and providing necessary information, attending a personal interview, and executing a general release of claims. The franchisee may also be required to correct any existing deficiencies at the restaurant and arrange for an inspection of the Bonchon restaurant prior to the transfer, paying an on-site inspection fee of $250 per inspector per day, plus associated costs.

Furthermore, the franchisee or transferee may need to upgrade the Bonchon restaurant to meet current standards. Bonchon also specifies a transfer fee of $15,000, but clarifies that the fee could be greater if necessary to cover reasonable costs and expenses associated with the transfer application, including the review, assignee training, and legal and accounting fees. Notably, no transfer fee is charged if the assignee is an immediate family member. These stipulations ensure that Bonchon can recover legitimate costs while also setting some boundaries on transfer fees for franchisees in Washington.