What is the condition regarding transfer fees for a Brueggers Bagels franchise in Washington?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, specifically the Washington Addendum to the Franchise Agreement, transfer fees are collectable but with a condition. In Washington state, Brueggers Bagels can only collect transfer fees to the extent that those fees accurately reflect the company's reasonable estimated or actual costs associated with processing the transfer.

This means that Brueggers Bagels cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the real expenses that Brueggers Bagels incurs when a franchise is transferred from one owner to another. This provision is designed to protect franchisees in Washington from excessive or unfair transfer fees.

For a prospective Brueggers Bagels franchisee in Washington, this is a beneficial condition. It provides some assurance that the transfer fees will be reasonable and justifiable. However, it's important for the franchisee to understand what costs Brueggers Bagels includes when calculating the transfer fee. A franchisee should request a detailed breakdown of these costs to ensure transparency and compliance with Washington law.