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Are there any limitations on Bumper Man's ability to collect transfer fees in Washington?

Bumper_Man Franchise · 2025 FDD

Answer from 2025 FDD Document

Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, there are limitations regarding transfer fees for franchises purchased in Washington. Specifically, Bumper Man can only collect transfer fees to the extent that they reflect the company's reasonable estimated or actual costs in completing the transfer. This means Bumper Man cannot charge an arbitrary or inflated transfer fee; it must be tied to the real expenses Bumper Man incurs.

This provision protects prospective Bumper Man franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees are based on actual costs rather than being a source of additional profit for Bumper Man. This is more favorable than some franchise systems, which may impose fixed transfer fees that are not directly related to the franchisor's costs.

For a potential Bumper Man franchisee in Washington, this means they should carefully review any proposed transfer fees to ensure they are reasonable and justified by Bumper Man's actual costs. If the fees seem excessive, the franchisee has grounds to challenge them under Washington law. This provides a degree of financial protection during a franchise transfer.

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.