factual

Are there limitations on transfer fees for a Brueggers Bagels franchise in Washington?

Brueggers_Bagels Franchise · 2025 FDD

Answer 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 23 — RECEIPTS (FDD pages 61–335)

What This Means (2025 FDD)

According to Brueggers Bagels' 2025 Franchise Disclosure Document, Washington state law places a limitation on transfer fees. Specifically, the FDD states that transfer fees are only collectable to the extent that they reflect Brueggers Bagels' reasonable estimated or actual costs in processing the transfer.

This means that Brueggers Bagels cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses the company incurs when facilitating the franchise transfer. This provision is designed to protect franchisees from unreasonable or excessive transfer fees that do not correspond to the franchisor's actual costs.

Prospective Brueggers Bagels franchisees in Washington should be aware of this protection. If they decide to sell their franchise, the transfer fee they are charged must be justifiable based on the franchisor's costs. If a franchisee believes the transfer fee is too high, they can request an itemized breakdown of the costs to ensure they align with the "reasonable estimated or actual costs" standard.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.