To what extent are transfer fees collectable by Petro Stopping Center in Washington?

According to Petro Stopping Center's 2025 Franchise Disclosure Document, transfer fees are collectable in Washington state, but only to the extent that they reflect Petro Stopping Center's reasonable estimated or actual costs in facilitating the transfer. This means that Petro Stopping Center cannot charge arbitrary or inflated transfer fees; the fees must be tied to the actual expenses incurred during the transfer process. This provision is outlined in the addendum to the disclosure document specifically for Washington, indicating that Washington law places certain restrictions on franchise agreements to protect franchisees.

For a prospective Petro Stopping Center franchisee in Washington, this is a beneficial provision. It ensures that any transfer fees charged by Petro Stopping Center are fair and justifiable, preventing the franchisor from profiting excessively from franchise transfers. This protection is particularly important because franchise agreements often favor the franchisor, and state laws like the Washington Franchise Investment Protection Act aim to balance the power dynamic.

It is important for franchisees to understand what constitutes "reasonable estimated or actual costs." This could include legal fees, administrative expenses, training costs for the new franchisee, and other direct costs associated with the transfer. Franchisees should request a detailed breakdown of these costs from Petro Stopping Center to ensure transparency and compliance with Washington law. If a franchisee believes the transfer fees are unreasonable, they may have grounds to challenge them under the Washington Franchise Investment Protection Act.

This provision is a specific example of how state franchise laws can modify or supersede the terms of a standard franchise agreement. Prospective franchisees should always carefully review any state-specific addenda to the FDD and consult with an attorney to fully understand their rights and obligations under both the franchise agreement and applicable state laws.