To what extent are transfer fees collectable by Bonchon in Washington?

According to Bonchon's 2025 Franchise Disclosure Document, transfer fees in Washington are collectable only to the extent that they reflect Bonchon's reasonable estimated or actual costs in completing the transfer. This means Bonchon cannot charge an arbitrary transfer fee; it must be tied to the expenses they incur during the transfer process. This provision is specific to franchises operating in Washington state, as indicated in Item 23 of the FDD.

For a prospective Bonchon franchisee in Washington, this is a beneficial protection. It ensures that transfer fees are fair and directly related to the services Bonchon provides during the transfer. This prevents Bonchon from profiting excessively from franchise transfers within Washington.

However, it's important for franchisees to understand what Bonchon considers 'reasonable estimated or actual costs.' Franchisees should request a detailed breakdown of these costs to ensure transparency and justify the transfer fee. If the franchisee believes the fee is unreasonable, they may have grounds to dispute it under Washington state law.