To what extent are transfer fees collectable for a Brueggers Bagels franchise transfer in Washington?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, transfer fees for franchises in Washington State are collectable, but with a specific limitation. The fees must directly correspond to Brueggers Bagels's reasonable estimated or actual costs incurred during the transfer process. This provision is part of the Washington Addendum to both the License Agreement and the Development Agreement, acknowledging the Washington Franchise Investment Protection Act.

This means that Brueggers Bagels cannot charge arbitrary or inflated transfer fees. The fees must be justifiable based on the expenses Brueggers Bagels incurs while facilitating the transfer of the franchise. This protection is in place due to the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair practices.

For a prospective Brueggers Bagels franchisee in Washington, this is a beneficial provision. It ensures that transfer fees are fair and transparent, preventing the franchisor from profiting excessively from franchise transfers. Franchisees should ensure they receive a detailed breakdown of the costs associated with the transfer to verify the reasonableness of the fees. If the fees seem excessive, a franchisee could potentially challenge them under the Washington Franchise Investment Protection Act.