Under what condition are transfer fees collectable for a Carvel franchise in Washington?

According to Carvel's 2025 Franchise Disclosure Document, transfer fees in Washington are collectable only to the extent that they reflect Carvel's reasonable estimated or actual costs in executing the transfer. This means that Carvel cannot charge an arbitrary or inflated transfer fee; the fee must be directly related to the expenses Carvel incurs during the transfer process.

This provision protects franchisees in Washington from excessive transfer fees that do not correspond to actual costs. It ensures that Carvel is not profiting unfairly from franchise transfers but is only recovering legitimate expenses. This is a beneficial protection for franchisees in Washington, as it promotes fairness and transparency in the transfer process.

Prospective Carvel franchisees in Washington should be aware of this protection and ensure that any transfer fees charged are reasonable and justified by actual costs. They may want to request a detailed breakdown of the costs associated with the transfer to verify the reasonableness of the fee. This regulation helps to ensure a more equitable relationship between Carvel and its franchisees in the state of Washington during franchise transfers.