To what extent are transfer fees collectable for an Embassy Suites franchise transfer in Washington?

According to Embassy Suites's 2025 Franchise Disclosure Document, transfer fees for franchises in Washington are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means Embassy Suites cannot charge arbitrary or inflated transfer fees; the fees must be directly related to the expenses they incur during the transfer process.

This provision protects prospective Embassy Suites franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees are justifiable and not simply a means for the franchisor to profit unduly from the transfer. Franchisees should request a detailed breakdown of how the transfer fee is calculated to ensure it aligns with the franchisor's reasonable costs.

Furthermore, the FDD states that in the event of conflicting laws, the Washington Franchise Investment Protection Act will take precedence. This reinforces the protection afforded to franchisees under Washington state law, ensuring that the specific provisions of the Act, including those related to fair and reasonable transfer fees, are upheld. This clause provides an additional layer of security for franchisees operating in Washington, as it prioritizes state law over conflicting terms in the franchise agreement.