For a Jersey Mikes franchise in Washington, what is the condition for collecting transfer fees?

According to Jersey Mikes's 2025 Franchise Disclosure Document, transfer fees are collectable in Washington state only to the extent that they accurately represent Jersey Mike's 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.

For a prospective franchisee, this is beneficial because it protects them from excessive or unjustified transfer fees. If a franchisee decides to sell their Jersey Mikes franchise, the transfer fee they are charged must be a fair reflection of the franchisor's costs. This provision helps ensure transparency and prevents the franchisor from profiting unduly from franchise transfers.

This condition is specific to Washington due to the state's franchise investment protection laws. It's important for franchisees in Washington to be aware of this protection, as franchise agreements often contain clauses that might appear to allow for more discretionary transfer fees. This modification ensures that Washington state law takes precedence, providing a safeguard for franchisees during the transfer process.