In Washington, are there any restrictions on transfer fees for a Boulder Designs franchise?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, Washington State law does place some restrictions on transfer fees. Specifically, transfer fees are only collectable to the extent that they accurately reflect Boulder Designs' reasonable estimated or actual costs associated with facilitating the transfer of the franchise.
This means that Boulder Designs cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses Boulder Designs incurs during the transfer process. This protects prospective Boulder Designs franchisees in Washington from excessive or unreasonable transfer fees.
It is important for a potential Boulder Designs franchisee in Washington to understand this restriction, as it provides a legal basis to challenge any transfer fee that seems disproportionate to the actual costs incurred by Boulder Designs. Franchisees should request a detailed breakdown of how the transfer fee is calculated to ensure it aligns with the 'reasonable estimated or actual costs' standard.