In Washington state, to what extent are Churchs Chicken transfer fees collectable?

According to Churchs Chicken's 2025 Franchise Disclosure Document, transfer fees in Washington state are collectable, but with limitations. Specifically, Churchs Chicken can only collect transfer fees to the extent that those fees accurately reflect the company's reasonable estimated or actual costs incurred during the transfer process.

This means that Churchs Chicken cannot charge arbitrary or inflated transfer fees. The fees must be tied to tangible expenses that Churchs Chicken incurs, such as administrative costs, legal fees, training expenses for the new franchisee, and other documented costs directly related to facilitating the transfer.

For a prospective Churchs Chicken franchisee in Washington, this provides some protection against excessive transfer fees. If a franchisee believes the transfer fees are unreasonable or not reflective of actual costs, they may have grounds to challenge the fees under Washington state law. It is advisable for franchisees to request a detailed breakdown of the costs associated with the transfer to ensure transparency and justification of the fees charged.

This provision aims to balance the franchisor's need to cover legitimate transfer-related expenses with the franchisee's interest in avoiding unfair or excessive charges, aligning with the state's franchise investment protection act.