factual

To what extent are transfer fees collectable from a Deer Solution franchisee in Washington?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to Deer Solution's 2025 Franchise Disclosure Document, transfer fees are collectable from a franchisee in Washington to the extent that they reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means Deer Solution can only charge a transfer fee that covers the expenses they incur during the transfer process.

This provision protects franchisees from excessive or arbitrary transfer fees. It ensures that the fees are tied to actual costs, such as legal and administrative work, rather than being a source of profit for Deer Solution. A prospective franchisee in Washington should carefully document and scrutinize any transfer fee charged to ensure it aligns with this standard.

It is important for a potential Deer Solution franchisee to understand what constitutes "reasonable estimated or actual costs." This may include due diligence, training of the new franchisee, and administrative expenses. The franchisee should request a detailed breakdown of the costs included in the transfer fee to ensure transparency and compliance with Washington state law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.