Under what condition are transfer fees collectable for a Circle K franchise in Washington?

According to the 2025 Circle K Franchise Disclosure Document, transfer fees are collectable in Washington state only to the extent that they reflect Circle K's reasonable estimated or actual costs in facilitating the transfer. This means Circle K cannot charge arbitrary or inflated transfer fees; the fees must be tied to the actual expenses Circle K incurs during the transfer process. This provision is in place to protect franchisees from unreasonable or excessive transfer fees.

This regulation is specific to Washington, as indicated by the reference to Washington state law within the FDD. This suggests that other states may have different regulations regarding transfer fees, or no regulations at all. A prospective franchisee should be aware of the specific laws in their state regarding franchise transfers and fees.

For a prospective Circle K franchisee in Washington, this means that if they decide to sell their franchise, the transfer fees charged by Circle K must be justifiable and transparent. The franchisee has the right to question any transfer fees that seem unreasonable or not directly related to the costs of the transfer. It is advisable for franchisees to keep records of all transfer-related expenses and to seek clarification from Circle K regarding the breakdown of transfer fees to ensure compliance with Washington state law.