Under what condition are transfer fees collectable from a Carvel franchisee in Washington?

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

This provision protects franchisees in Washington from excessive transfer fees that do not correspond to the franchisor's actual costs. It ensures that the transfer fee is fair and reasonable, rather than a source of additional profit for Carvel. This is particularly important for franchisees who may be looking to sell their business due to personal circumstances or other reasons.

For a prospective Carvel franchisee in Washington, this information is crucial for understanding the financial implications of transferring their franchise in the future. It provides assurance that any transfer fees charged will be justifiable and transparent, based on actual costs incurred by Carvel. Franchisees should ensure they keep records of any costs associated with the transfer to compare against the fees charged.