Under what circumstances is Jersey Mikes permitted to collect transfer fees in Washington?

According to Jersey Mikes's 2025 Franchise Disclosure Document, transfer fees are collectable in Washington state only to the extent that they accurately reflect Jersey Mikes's reasonable estimate or actual costs incurred during the transfer process. This means Jersey Mikes cannot charge arbitrary or inflated transfer fees.

For a prospective Jersey Mikes franchisee in Washington, this is a beneficial protection. It ensures that transfer fees are tied to actual expenses, preventing the franchisor from profiting excessively from franchise transfers. This provision aims to maintain fairness and transparency in the financial aspects of franchise transactions.

This aligns with the general principle of good faith and fair dealing required by Washington's Franchise Investment Protection Act. Franchisees should still carefully review all transfer-related costs and documentation to ensure compliance with this standard. If the transfer fees seem unreasonable or disproportionate to the actual costs, a franchisee may have grounds to challenge them under Washington law.