To what extent are transfer fees collectable from a City Publications franchisee in Washington?

According to City Publications' 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington, but with limitations. The Washington Addendum to the Franchise Agreement states that transfer fees can only be collected to the extent that they accurately reflect City Publications' reasonable estimated or actual costs incurred during the transfer process.

This means City Publications cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses City Publications incurs, such as administrative costs, legal fees, or the cost of training the new franchisee. This provision protects franchisees from excessive or unfair transfer fees.

Prospective City Publications franchisees in Washington should carefully document and scrutinize any transfer fee charged to ensure it aligns with the franchisor's reasonable costs. If a franchisee believes the fee is excessive, they may have grounds to challenge it under Washington state law.