Under what conditions are transfer fees collectable for a Cinnabon franchise transfer in Washington?

According to the 2025 Cinnabon FDD, transfer fees in Washington state are only collectable to the extent that they reflect Cinnabon's reasonable estimated or actual costs in completing the transfer. This means that Cinnabon cannot charge an arbitrary or inflated transfer fee; the fee must be directly tied to the expenses Cinnabon incurs during the transfer process. This provision is specific to Washington, as indicated in the addendum to the disclosure document for that state.

This regulation protects prospective Cinnabon franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees charged are justifiable and related to the actual work Cinnabon performs to facilitate the transfer. This is more favorable than some franchise agreements, where transfer fees can be a fixed percentage of the initial franchise fee or a flat amount, regardless of the franchisor's actual costs.

For a prospective Cinnabon franchisee in Washington, this means they should carefully scrutinize any transfer fee charged by Cinnabon. They have the right to request a breakdown of the costs that make up the transfer fee to ensure it aligns with Cinnabon's reasonable estimated or actual expenses. If the fee seems excessive or unjustified, the franchisee can challenge it based on the Washington Franchise Investment Protection Act.