To what extent are transfer fees collectable from Floors To Go franchisees in Washington?

According to the 2025 Floors To Go Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington to the extent that the fees reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means Floors To Go cannot charge an arbitrary or inflated transfer fee; the fee must be tied to the actual expenses Floors To Go incurs during the transfer process.

This provision protects prospective Floors To Go franchisees in Washington from excessive or unreasonable transfer fees. It ensures that the fees charged are justifiable and directly related to the costs Floors To Go incurs. This is a beneficial protection for franchisees, as it prevents the franchisor from profiting excessively from franchise transfers.

It is important for a prospective Floors To Go franchisee to understand what constitutes "reasonable estimated or actual costs." This could include legal fees, administrative expenses, training costs for the new franchisee, and other direct costs associated with the transfer. A franchisee should request a detailed breakdown of these costs from Floors To Go before agreeing to a transfer to ensure transparency and avoid disputes.