factual

Are there any restrictions 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's 2025 Franchise Disclosure Document, specifically the Washington Addendum included within Item 23, there are restrictions on transfer fees for franchises purchased in Washington. The FDD states that transfer fees are only collectable to the extent that they reflect Brueggers Bagels's reasonable estimated or actual costs in completing the transfer. This means that Brueggers Bagels cannot charge an arbitrary or inflated transfer fee.

This provision protects prospective Brueggers Bagels franchisees in Washington from excessive transfer fees that do not correspond to the actual costs incurred by the franchisor during the transfer process. It ensures that the fees are fair and justifiable, preventing the franchisor from profiting unduly from franchise transfers.

For a prospective franchisee, this means that if they decide to sell their Brueggers Bagels franchise in the future, the transfer fees they are charged must be reasonable and directly related to the costs Brueggers Bagels incurs. If a franchisee believes the transfer fees are unreasonable, they may have grounds to challenge them under the Washington Franchise Investment Protection Act.

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.