What are some examples of 'reasonable estimated or actual costs' that Chesters can include in transfer fees in Washington?

According to Chesters's 2025 Franchise Disclosure Document, transfer fees are only collectable to the extent that they reflect Chesters's reasonable estimated or actual costs in effecting a transfer in Washington. This means that Chesters cannot arbitrarily charge a high transfer fee; the fee must be tied to the actual expenses Chesters incurs during the transfer process.

While the FDD excerpt specifies that transfer fees must reflect reasonable costs, it does not provide a list of examples of what those costs might include. Common costs that franchisors incur during a transfer include legal fees for reviewing the transfer agreement, administrative costs for processing the transfer paperwork, and training costs for the new franchisee.

Prospective franchisees in Washington should be aware of this legal protection, which prevents Chesters from profiting excessively from franchise transfers. It is advisable to ask Chesters for a detailed breakdown of potential transfer costs to ensure they are indeed reasonable and justified.