In Washington, to what extent are Bonchon transfer fees collectable?

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 facilitating the transfer. This means that Bonchon cannot charge an arbitrary transfer fee; the fee must be tied to the actual expenses Bonchon incurs during the transfer process.

This provision protects franchisees in Washington from excessive or unjustified transfer fees. It ensures that Bonchon only recovers legitimate costs associated with the transfer, such as reviewing the application, training the new franchisee, and covering legal and accounting fees. This aligns with the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair practices.

For a prospective Bonchon franchisee in Washington, this means that if they decide to sell their franchise, the transfer fee they pay to Bonchon must be reasonable and transparent. Bonchon should be able to justify the fee by providing a breakdown of the costs it covers. If a franchisee believes the transfer fee is unreasonable, they may have grounds to challenge it under Washington law.