For C12 Group franchises in Washington, to what extent are transfer fees collectable?

According to the 2025 C12 Group Franchise Disclosure Document, transfer fees for franchises in Washington are collectable, but with limitations. Specifically, these fees can only be collected to the extent that they accurately reflect C12 Group's reasonable estimated or actual costs incurred during the transfer process. This means C12 Group cannot charge arbitrary or inflated transfer fees; the fees must be tied to tangible expenses.

This provision protects prospective C12 Group franchisees in Washington by ensuring they are not subjected to excessive or unjustified transfer fees. It also provides a degree of transparency, as the fees must be justifiable based on actual or estimated costs. This is particularly important because franchise agreements often grant franchisors considerable discretion in setting fees, which can sometimes be a point of contention.

For a prospective C12 Group franchisee, this means carefully reviewing the transfer fee structure outlined in the franchise agreement. It would be prudent to inquire about what specific costs are included in the transfer fee and how C12 Group estimates or calculates these costs. Understanding these details can help a franchisee assess whether the fees are indeed reasonable and compliant with Washington state law. If the fees seem excessive or lack clear justification, it may be advisable to seek legal counsel to ensure full compliance with the Washington Franchise Investment Protection Act.