Under what condition are transfer fees collectable for a Chocolate Fish Coffee franchise in Washington?

According to the 2024 Franchise Disclosure Document, for a Chocolate Fish Coffee franchise in Washington, transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in executing a transfer. This is specified in the Washington Addendum to the Disclosure Document and Rider to the Franchise and Multi-Unit Development Agreement.

This addendum acknowledges that Washington state law (RCW 19.100.180) and court decisions may supersede the franchise agreement, particularly in areas of termination and renewal. It also stipulates that any arbitration involving a franchise purchased in Washington must occur within the state, or in a mutually agreed-upon location, or as determined by the arbitrator. Furthermore, in case of conflict of laws, the Washington Franchise Investment Protection Act (Chapter 19.100 RCW) will take precedence.

This means that Chocolate Fish Coffee franchisees in Washington are protected by state law regarding transfer fees, ensuring they are not charged excessive or arbitrary amounts. The franchisor can only collect fees that are directly related to the costs incurred during the transfer process. This provision aims to protect franchisees from unreasonable financial burdens during a transfer, aligning with the state's franchise investment protection act.