In Washington, are there any limitations on the transfer fees Even Hotels can collect?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Transfer fees may only be collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Washington state law places a limitation on the transfer fees that Even Hotels can collect from franchisees. Specifically, transfer fees may only reflect the franchisor's reasonable estimated or actual costs in facilitating the transfer.
This means that Even Hotels cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses Even Hotels incurs during the transfer process. This protects franchisees from excessive or unfair charges when they sell or transfer their franchise.
For a prospective Even Hotels franchisee in Washington, this is a beneficial provision. It ensures that transfer fees are reasonable and justifiable, preventing the franchisor from profiting excessively from franchise transfers. Franchisees should ensure that any transfer fee charged by Even Hotels is transparent and directly related to the costs incurred by the franchisor during the transfer.