What is the limitation on transfer fees collectable by Mrcool in Washington?

According to the 2025 Mrcool FDD, Washington State law limits the transfer fees that Mrcool can collect from franchisees. Specifically, Mrcool can only collect transfer fees to the extent that the fees reflect the company's reasonable estimated or actual costs incurred during the transfer process.

This means that Mrcool cannot charge an arbitrary or inflated transfer fee. The fee must be directly related to the expenses Mrcool incurs while facilitating the transfer of the franchise to a new owner. This provision is designed to protect franchisees in Washington from excessive or unfair transfer fees.

For a prospective Mrcool franchisee in Washington, this is a beneficial protection. It ensures that if they decide to sell their franchise in the future, the transfer fees will be reasonable and tied to actual costs, rather than being a source of profit for Mrcool. This could make it easier and more financially viable to sell the franchise if the franchisee chooses to do so.