Under what condition are transfer fees collectable for a Dq Treat franchise in Washington?

According to the 2025 Dq Treat FDD, transfer fees are collectable in Washington state only to the extent that they accurately reflect Dq Treat's reasonable estimated or actual costs incurred while processing the transfer. This means Dq Treat cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the real expenses Dq Treat incurs during the transfer process.

This provision protects prospective Dq Treat franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees are justifiable and directly related to the costs Dq Treat bears during the transfer. This is particularly important because transfer fees can be a significant expense, and this regulation prevents Dq Treat from profiting unduly from franchise transfers in Washington.

It is important for potential Dq Treat franchisees in Washington to understand this regulation, as it provides a legal basis to challenge transfer fees that appear unreasonable or disproportionate to the actual costs incurred by Dq Treat. Franchisees should request a detailed breakdown of the costs that make up the transfer fee to ensure compliance with this requirement.