For a Deka Lash franchise transfer in Washington, are transfer fees always collectable?

According to Deka Lash's 2024 Franchise Disclosure Document, transfer fees for franchises in Washington are not always collectable. The Washington Addendum clarifies that transfer fees are only collectable to the extent that they reflect Deka Lash's reasonable estimated or actual costs in processing the transfer.

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

For a prospective Deka Lash franchisee in Washington, this is a beneficial clarification. It provides assurance that any transfer fees charged will be justifiable and based on actual costs, rather than being a source of profit for the franchisor. Franchisees should ensure they receive a detailed breakdown of the costs associated with the transfer fee to verify its reasonableness.