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

According to Itan's 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington, but with limitations. Specifically, Itan can only collect transfer fees to the extent that the fees reflect Itan's reasonable estimated or actual costs in facilitating the transfer.

This means that Itan cannot charge an arbitrary or inflated transfer fee. The fee must be tied to the actual expenses Itan incurs during the transfer process. This provision protects franchisees from unreasonable or excessive transfer fees that do not correspond to the franchisor's actual costs.

For a prospective Itan franchisee in Washington, this is an important protection. If they decide to sell their franchise, they can be assured that the transfer fee will be limited to Itan's reasonable costs. It would be prudent for a potential franchisee to inquire about what specific costs Itan includes in its transfer fee calculation to ensure transparency and avoid potential disputes in the future.