To what extent are transfer fees collectable from an Embassy Suites By Hilton franchisee in Washington?

According to the 2025 Embassy Suites By Hilton Franchise Disclosure Document, transfer fees are collectable from a franchisee in Washington to the extent that the fees reflect the reasonable estimated or actual costs that Embassy Suites By Hilton incurs during the transfer process.

This means that Embassy Suites By Hilton cannot charge arbitrary or inflated transfer fees. The fees must be tied to the actual expenses that the company incurs while processing the transfer of the franchise to a new owner. This protects franchisees from unreasonable financial burdens when they sell their business.

For a prospective Embassy Suites By Hilton franchisee in Washington, this is an important protection under the Washington Franchise Investment Protection Act. It ensures that transfer fees are fair and justifiable, preventing the franchisor from profiting excessively from franchise transfers.