To what extent are transfer fees collectable by C3 Wellness Spa?

According to C3 Wellness Spa's 2024 Franchise Disclosure Document, the ability to collect transfer fees is subject to certain limitations, specifically for franchises purchased in Washington state.

For franchisees in Washington, C3 Wellness Spa can only collect transfer fees to the extent that these fees accurately reflect the franchisor's reasonable estimated or actual costs incurred during the transfer process. This means C3 Wellness Spa cannot impose arbitrary or inflated transfer fees; the fees must be tied to tangible expenses the company incurs.

This provision protects Washington franchisees from excessive or unfair transfer fees, ensuring they are only charged for legitimate costs associated with the transfer. Prospective franchisees in Washington should carefully review any proposed transfer fees to ensure they align with this requirement. Franchisees outside of Washington may be subject to different standards for transfer fees.