Under what conditions are Cinnabon transfer fees collectable in Washington?

According to Cinnabon's 2025 Franchise Disclosure Document, 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 related to the expenses Cinnabon incurs during the transfer process.

For a prospective Cinnabon franchisee in Washington, this provides some protection against excessive transfer fees. If a franchisee decides to sell their Cinnabon business, the transfer fee charged by Cinnabon must be justifiable based on actual costs. This contrasts with some franchise systems where transfer fees can be a fixed amount, potentially exceeding the franchisor's actual costs.

This condition is specific to Washington due to the Washington Franchise Investment Protection Act. Franchisees should ensure they understand their rights under this Act, as certain provisions like limitations on jury trials or statutes of limitations may not be enforceable. This also means that any release or waiver of rights related to franchise agreement, except those executed pursuant to a negotiated settlement with independent counsel, are void.