To what extent are transfer fees collectable for a Pearce Bespoke franchise transfer in Washington?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, transfer fees in Washington are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in executing the transfer. This means Pearce Bespoke cannot charge an arbitrary or inflated transfer fee; it must be tied to the real expenses they incur during the transfer process.

In general, Pearce Bespoke requires a transfer fee equal to the greater of (i) $10,000.00, or (ii) twenty five percent (25%) of the then current Initial Franchise Fee. This fee covers the costs Pearce Bespoke incurs, including the costs of any required training. However, this standard transfer fee may be superseded by the Washington state-specific regulation that limits the collectable amount to reasonable costs. There is no transfer fee payable for transfers to immediate family members (i.e.: spouse or children).

This Washington-specific stipulation protects franchisees from excessive transfer fees that could hinder the sale of their business. Prospective Pearce Bespoke franchisees in Washington should be aware of this protection, ensuring that any transfer fee charged is justifiable and transparently linked to actual costs. It is advisable to seek clarification from Pearce Bespoke regarding the breakdown of these costs before initiating a transfer.