Regarding transfers of Even Hotels franchises in Washington, under what condition are transfer fees collectable?

According to Even Hotels' 2025 Franchise Disclosure Document, for franchises in Washington state, transfer fees may only be collected if they accurately reflect the franchisor's reasonable estimated or actual costs associated with facilitating the transfer. This means Even Hotels cannot impose arbitrary or inflated transfer fees.

This provision is designed to protect franchisees in Washington from excessive transfer fees that do not correspond to the actual expenses incurred by Even Hotels during the transfer process. It ensures that fees are fair and justifiable, based on the work and resources Even Hotels expends to approve and process the transfer.

For a prospective Even Hotels franchisee in Washington, this is a beneficial protection. It allows them to transfer their franchise to a qualified buyer without being subjected to unreasonable fees that could hinder the sale. Franchisees should ensure they understand what costs Even Hotels includes in its transfer fee calculation to verify its reasonableness.

This requirement aligns with the Washington Franchise Investment Protection Act, which aims to provide certain protections to franchisees within the state. It is important for franchisees to be aware of this provision and to seek clarification from Even Hotels regarding the breakdown of transfer fees to ensure compliance.