What is the effect of the Washington Addendum on the Zoomin Groomin franchise agreement's provisions regarding transfer fees?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Transfer Fees.
Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Source: Item 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the Washington Addendum modifies the franchise agreement regarding transfer fees. Specifically, transfer fees are only collectable to the extent that they reflect Zoomin Groomin's reasonable estimated or actual costs in executing the transfer.
This modification ensures that Zoomin Groomin cannot profit excessively from franchise transfers in Washington. It protects franchisees from being charged exorbitant or arbitrary transfer fees. Instead, the fees must be directly tied to the franchisor's actual expenses during the transfer process.
This provision aligns with the Washington Franchise Investment Protection Act, which aims to protect franchisees from unfair or deceptive practices. Prospective Zoomin Groomin franchisees in Washington should be aware of this addendum, as it provides a safeguard against unreasonable transfer fees, ensuring that they only pay fees that are justified by the franchisor's actual costs.