Under what circumstances are transfer fees collectable from a Canopy Lawn Care franchisee in Washington?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington state, but only to the extent that the fees reflect the franchisor's reasonable estimated or actual costs associated with processing the transfer. This means Canopy Lawn Care can charge a fee to cover expenses they incur when a franchisee sells or transfers their franchise to someone else.

This provision protects franchisees from excessive or arbitrary transfer fees. Canopy Lawn Care cannot profit from the transfer itself, but can only recoup legitimate costs. These costs might include legal fees, administrative expenses for reviewing the new franchisee's application, and training the new franchisee.

For a prospective Canopy Lawn Care franchisee in Washington, this means that if they decide to sell their franchise in the future, they should expect to pay a transfer fee. However, they have the right to ask for a breakdown of how the fee was calculated to ensure it only covers reasonable costs. It would be prudent to discuss potential transfer scenarios and fee structures with current franchisees during due diligence to get a sense of typical costs.