To what extent are transfer fees collectable for a Jersey Mikes franchise transfer in Washington?

According to Jersey Mikes' 2025 Franchise Disclosure Document, transfer fees in Washington state are collectable only to the extent that they accurately reflect Jersey Mikes' reasonable estimate or actual costs incurred during the transfer process. This means that Jersey Mikes cannot charge an arbitrary or inflated transfer fee; the fee must be tied to the real expenses Jersey Mikes incurs.

This provision protects prospective Jersey Mikes franchisees in Washington from excessive or unfair transfer fees. It ensures that the fees are based on actual costs, such as administrative expenses, training, and other support provided to the new franchisee. This aligns with the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair practices.

For a prospective Jersey Mikes franchisee, this means that if you are considering transferring your franchise in Washington, the transfer fee you will be charged must be justifiable and transparent. You have the right to question the fee and request a breakdown of the costs involved to ensure they are reasonable. This regulation helps maintain fairness and prevents franchisors from profiting unduly from franchise transfers within Washington.