What is the condition for transfer fees to be collectable from a Sonesta Simply Suites franchisee in Washington?

According to the 2025 Sonesta Simply Suites FDD, transfer fees are collectable from a franchisee in Washington only if they accurately reflect the franchisor's reasonable estimated or actual costs incurred during the transfer process. This means Sonesta Simply Suites cannot charge arbitrary or inflated transfer fees; the fees must be tied to tangible expenses.

This provision protects franchisees in Washington from excessive or unfair transfer fees. It ensures that Sonesta Simply Suites can only recoup legitimate costs associated with the transfer, such as administrative, legal, or training expenses. This requirement promotes transparency and fairness in the franchise transfer process.

Prospective franchisees in Washington should carefully document and scrutinize any transfer fees charged by Sonesta Simply Suites to ensure they align with the franchisor's actual costs. If the fees seem unreasonable or inflated, franchisees have grounds to challenge them under Washington law. This regulation helps maintain a more equitable balance of power between the franchisor and franchisee during franchise transfers.