Are there any restrictions on transfer fees collectable from a Brueggers Bagels franchisee in Washington?

According to Brueggers Bagels's 2025 Franchise Disclosure Document, there are specific regulations regarding transfer fees for franchisees in Washington state. The FDD stipulates that transfer fees are only collectable to the extent that they accurately reflect Brueggers Bagels's reasonable estimated or actual costs incurred during the transfer process. This provision is part of the Washington Addendum to both the Development Agreement and the License Agreement, acknowledging the Washington Franchise Investment Protection Act.

This means that Brueggers Bagels cannot impose arbitrary or inflated transfer fees on franchisees in Washington. The fees must be directly tied to the expenses Brueggers Bagels incurs while facilitating the transfer, such as administrative costs, legal fees, or training expenses for the new franchisee. This regulation protects franchisees from potentially exploitative transfer fee practices.

Prospective Brueggers Bagels franchisees in Washington should be aware of this protection, ensuring that any transfer fees charged are justifiable and transparent. If a franchisee believes the transfer fees are unreasonable or not reflective of actual costs, they may have grounds to challenge the fees under the Washington Franchise Investment Protection Act. It is advisable for franchisees to request a detailed breakdown of the costs associated with the transfer to ensure compliance with this regulation.