To what extent are transfer fees collectable by Embassy Suites By Hilton in Washington?

According to Embassy Suites By Hilton's 2025 Franchise Disclosure Document, the collection of transfer fees in Washington is subject to certain limitations. Specifically, transfer fees are collectable only to the extent that they reflect Embassy Suites By Hilton's reasonable estimated or actual costs incurred during the transfer process. This means that the fees must be directly related to the expenses Embassy Suites By Hilton incurs while facilitating the transfer of the franchise.

This provision protects franchisees in Washington from excessive or arbitrary transfer fees. By limiting the fees to reasonable costs, the brand ensures that franchisees are not unduly burdened when they decide to transfer their franchise. This aligns with the Washington Franchise Investment Protection Act, which aims to provide certain protections to franchisees within the state.

Prospective franchisees should carefully review Section 12 of the franchise agreement, as amended by Item 22, to fully understand the specific costs that may be included in the transfer fees. It is also advisable to consult with a legal professional to ensure compliance with the Washington Franchise Investment Protection Act and to negotiate fair terms for any franchise transfer.