To what extent are transfer fees collectable for a Cool Binz franchise in Washington?

According to Cool Binz's 2025 Franchise Disclosure Document, transfer fees are collectable in Washington state only to the extent that they compensate Cool Binz for expenses directly incurred as a result of the transfer. This means that Cool Binz cannot charge an arbitrary or inflated transfer fee; the fee must be tied to actual costs they incur during the transfer process. This provision is in accordance with Washington state law.

This limitation protects prospective Cool Binz franchisees in Washington from excessive or unjustified transfer fees. It ensures that the fees are reasonable and directly related to the costs Cool Binz incurs. This is more favorable than in states where franchisors can impose transfer fees that are not directly tied to expenses.

However, the FDD does not specify exactly what expenses Cool Binz might consider as directly incurred. A prospective franchisee should seek clarification from Cool Binz regarding what specific costs are included in the transfer fee to fully understand the potential financial implications of transferring a franchise in Washington.