In Washington, are there any restrictions on transfer fees that Engel & Volkers can collect?

According to Engel & Volkers' 2025 Franchise Disclosure Document, Washington state law places a restriction on the transfer fees that Engel & Volkers can collect from franchisees. Specifically, transfer fees are only collectable to the extent that they reflect Engel & Volkers' reasonable estimated or actual costs incurred during the transfer process.

This means that Engel & Volkers cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses Engel & Volkers incurs, such as administrative costs, legal fees, or the cost of training the new franchisee. This provision protects franchisees from being charged excessive fees that do not correspond to the franchisor's actual costs.

Prospective Engel & Volkers franchisees in Washington should carefully review the transfer fee provisions in the Franchise Agreement and ensure that any fees charged are reasonable and justifiable. If a franchisee believes that the transfer fees are excessive, they may have grounds to challenge the fees under Washington law.