In Washington, what costs can Bumper Man include when calculating transfer fees?
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 the 2025 Bumper Man FDD, transfer fees in Washington are limited to the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means Bumper Man can only charge fees that directly reflect the expenses they incur during the transfer process.
This provision protects franchisees in Washington from excessive or arbitrary transfer fees. It ensures that the fees are tied to actual costs, preventing Bumper Man from profiting unduly from franchise transfers. This aligns with the Washington Franchise Investment Protection Act, which aims to provide certain protections to franchisees.
Prospective franchisees in Washington should be aware of this limitation on transfer fees. If they decide to sell their franchise, they can expect that any transfer fees charged by Bumper Man will be scrutinized for reasonableness. It is advisable to keep records and documentation related to the transfer process to ensure transparency and justify the fees charged.