To what extent are transfer fees collectable from a Brueggers Bagels franchisee in Washington?

According to the 2025 Brueggers Bagels FDD, the collection of transfer fees from franchisees in Washington is governed by the Washington Franchise Investment Protection Act. Specifically, transfer fees are only collectable to the extent that they accurately reflect Brueggers Bagels' reasonable estimated or actual costs incurred during the transfer process. This provision is outlined in the Washington addendum to the franchise agreement.

This means that Brueggers Bagels cannot charge an arbitrary or inflated transfer fee. The fee must be justifiable based on the expenses Brueggers Bagels incurs while facilitating the transfer of the franchise to a new owner. This protection is in place to prevent franchisors from profiting excessively from franchise transfers and to ensure fairness for franchisees.

For a prospective Brueggers Bagels franchisee in Washington, this is an important safeguard. It ensures that if they decide to sell their franchise in the future, the transfer fees will be reasonable and directly tied to the actual costs Brueggers Bagels incurs. Franchisees should ensure they understand what costs are included in the transfer fee and should request a detailed breakdown from Brueggers Bagels to verify its legitimacy.