What is the limitation on transfer fees that Cinnabon can collect in Washington?

According to the 2025 Cinnabon Franchise Disclosure Document, transfer fees in Washington state are limited to the extent that they reflect Cinnabon's reasonable estimated or actual costs in facilitating the transfer. This means Cinnabon can only charge franchisees in Washington fees that cover the expenses Cinnabon incurs during the transfer process.

For a prospective Cinnabon franchisee in Washington, this is a beneficial protection. It prevents Cinnabon from imposing excessive or arbitrary transfer fees that could hinder the sale of their franchise. This ensures that the fees are tied to actual services and costs, providing transparency and fairness in the transfer process.

This limitation is important because it allows franchisees to transfer their business without being burdened by unreasonable costs. It is a protection under the Washington Franchise Investment Protection Act, ensuring that transfer fees are justifiable and not a source of undue profit for the franchisor. Franchisees should ensure they understand what costs are included in any transfer fee charged by Cinnabon.