Are there any limitations on the transfer fees that Dq Treat can collect in Washington?
Dq_Treat Franchise · 2025 FDDAnswer 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 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, there are limitations on the transfer fees that Dq Treat can collect in Washington state. Specifically, transfer fees are only collectable to the extent that they reflect Dq Treat's reasonable estimated or actual costs in completing the transfer. This means Dq Treat cannot charge an arbitrarily high transfer fee; it must be tied to the expenses they incur during the transfer process.
This limitation protects prospective Dq Treat franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees charged are justifiable and related to the actual costs Dq Treat bears. This provision aims to prevent Dq Treat from profiting unduly from franchise transfers beyond recovering their direct expenses.
For a prospective franchisee, this means it's important to understand what costs Dq Treat includes when calculating the transfer fee. A franchisee should request a detailed breakdown of these costs to ensure they are reasonable and justifiable. If the transfer fee seems excessive, a franchisee can potentially challenge it if it doesn't align with Dq Treat's actual or estimated costs. This regulation provides a level of financial protection for franchisees in Washington during the transfer process.