To what extent are transfer fees collectable by Buns On Fire?

According to Buns On Fire's 2025 Franchise Disclosure Document, the ability to collect transfer fees is subject to certain state regulations. Specifically, for franchises purchased in Washington, the collection of transfer fees is limited to the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means that Buns On Fire can only charge a transfer fee that accurately reflects the expenses they incur during the transfer process.

This regulation protects franchisees in Washington from excessive or arbitrary transfer fees. It ensures that the fees charged are directly related to the services and costs incurred by Buns On Fire during the transfer, such as legal and administrative work.

Prospective franchisees in Washington should be aware of this provision, as it could impact the overall cost of transferring their franchise. It is advisable to request a detailed breakdown of the costs associated with the transfer fee to ensure it aligns with the franchisor's reasonable expenses. This transparency helps franchisees understand the justification for the fee and ensures compliance with Washington state law.