Are transfer fees always collectable under the Bumper Man franchise agreement in Washington?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Transfer Fees. Transfer fees are collectable to the extent that they reflect the Franchisee's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, transfer fees are not always collectable in Washington. The Washington Addendum to the Franchise Agreement states that transfer fees are collectable only to the extent that they reflect Bumper Man's reasonable estimated or actual costs in facilitating a transfer.
This means that Bumper Man cannot charge a flat transfer fee if that fee does not accurately represent the costs they incur during the transfer process. This provision is designed to protect franchisees in Washington from excessive or arbitrary transfer fees. It ensures that the fees are tied to actual expenses, providing a degree of fairness and transparency.
For a prospective Bumper Man franchisee in Washington, this is a beneficial clause. It is important to understand what costs Bumper Man includes when calculating the transfer fee. Franchisees should request a detailed breakdown of these costs to ensure they are reasonable and justified. This addendum provides an added layer of protection for franchisees operating in Washington, ensuring that transfer fees are fair and directly related to the costs incurred by the franchisor.