factual

What is the limitation on collecting transfer fees for a Zoomin Groomin franchise in Washington?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

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 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to Zoomin Groomin's 2025 Franchise Disclosure Document, transfer fees in Washington state are limited to the franchisor's reasonable estimated or actual costs in facilitating the transfer. This means that Zoomin Groomin can only charge a franchisee a transfer fee that accurately reflects the expenses they incur during the transfer process.

This provision protects franchisees from being charged excessive or arbitrary transfer fees. It ensures that the fees are tied to actual costs, such as administrative work, legal reviews, or training of the new franchisee. This limitation is in place to prevent franchisors from profiting unduly from franchise transfers.

For a prospective Zoomin Groomin franchisee in Washington, this is a beneficial protection under the Washington Franchise Investment Protection Act. If a franchisee decides to sell their franchise, the transfer fees they are charged by Zoomin Groomin must be reasonable and directly related to the costs of the transfer process. Franchisees should request a detailed breakdown of these costs to ensure compliance with the law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.