In Washington, are Degree Wellness transfer fees subject to state law?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 6 is supplemented with the following:
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated, or actual, costs in effecting a transfer. The Transfer Fee is subject to state law
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, transfer fees in Washington are subject to state law. This means that the fees Degree Wellness charges for transferring a franchise must comply with Washington state regulations.
Specifically, the FDD states that transfer fees are collectable only to the extent that they reflect Degree Wellness's reasonable estimated or actual costs in facilitating the transfer. This protects franchisees in Washington from being charged excessive or arbitrary transfer fees. The fees must be tied to the franchisor's actual expenses.
This provision ensures that Degree Wellness cannot profit excessively from franchise transfers and that the fees charged are justifiable based on the work involved in processing the transfer. Prospective franchisees in Washington should be aware of this protection and ensure that any transfer fees charged by Degree Wellness are reasonable and compliant with state law.