To what extent are transfer fees collectable from a Jersey Mikes franchisee in Washington?

According to Jersey Mikes's 2025 Franchise Disclosure Document, transfer fees are collectable from franchisees in Washington under specific conditions. The FDD stipulates that Jersey Mikes can only collect transfer fees to the extent that these fees accurately reflect the company's reasonable estimate or actual costs incurred during the transfer process. This means Jersey Mikes cannot impose arbitrary or inflated transfer fees on franchisees in Washington.

This provision protects franchisees by ensuring they are not overcharged for the transfer of their franchise. It also implies that Jersey Mikes must be able to justify the transfer fees with documented costs or reasonable estimates. A prospective franchisee should carefully review the transfer fee structure outlined in the franchise agreement and understand what costs are included in the fee.

For a Jersey Mikes franchisee in Washington, this means that the transfer fees must be transparent and directly related to the expenses Jersey Mikes incurs during the transfer. If a franchisee believes the transfer fees are excessive or not justified, they may have grounds to challenge the fees under Washington law. Franchisees should seek legal counsel if they encounter issues with transfer fees that seem unreasonable or not in line with actual costs.