Under what conditions are transfer fees collectable for a Carls Jr. franchise in Washington?

According to the 2025 Carls Jr. Franchise Disclosure Document, transfer fees in Washington state are only collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means Carls Jr. can only charge a transfer fee that covers the expenses they incur during the transfer process.

This provision protects prospective Carls Jr. franchisees in Washington from excessive or arbitrary transfer fees. The fees must be tied to actual costs, preventing the franchisor from profiting unduly from franchise transfers. This is a beneficial protection for franchisees, ensuring they are not overcharged when selling or transferring their franchise.

It is important for a prospective Carls Jr. franchisee to understand what constitutes 'reasonable estimated or actual costs.' This could include legal fees, administrative expenses, training costs for the new franchisee, and other documented expenses. Franchisees should request a detailed breakdown of these costs from Carls Jr. to ensure transparency and compliance with Washington state law.