Under what conditions are transfer fees collectable for a Bumper Man franchise in Washington?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Transfer Fees.
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, transfer fees in Washington are collectable only to the extent that they reflect Bumper Man's reasonable estimated or actual costs in effecting a transfer. This means that Bumper Man cannot charge an arbitrary or inflated transfer fee.
This provision protects prospective Bumper Man 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 is a beneficial clause. It is important to carefully review the franchise agreement and any related documents to understand how transfer fees are calculated and what costs are included. If the transfer fees seem unreasonable or disproportionate to the actual costs, a franchisee should seek clarification and potentially negotiate the terms with Bumper Man.