In Washington, what is the limitation on transfer fees that Corcoran can collect?

According to Corcoran's 2025 Franchise Disclosure Document, transfer fees in Washington State are limited. Corcoran can only collect transfer fees to the extent that they reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means Corcoran cannot charge an arbitrary or inflated transfer fee; the fee must be directly related to the expenses Corcoran incurs during the transfer process.

This limitation protects franchisees in Washington from excessive transfer fees that could hinder the sale of their franchise. It ensures that Corcoran only recovers legitimate costs associated with the transfer, such as administrative or legal expenses.

Prospective franchisees should carefully document all costs associated with the transfer to ensure compliance with Washington state law. This provision aims to provide a fair and transparent process for franchise transfers, preventing franchisors from profiting unduly from these transactions.