Under what conditions is it unlawful for Alloy to repurchase a franchisee's business in Washington?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Certain Buy-Back Provisions. Provisions in franchise agreements or related agreements that permit the franchisor to repurchase the franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, specifically the Washington Addendum, there are conditions under which Alloy's ability to repurchase a franchisee's business is restricted. In Washington, provisions in franchise agreements that allow Alloy to repurchase a franchisee's business for any reason during the franchise term without the franchisee's consent are unlawful.
However, there is an exception to this rule. Alloy is permitted to repurchase the franchise if the termination is for a good cause. This means that if Alloy has a legitimate and justifiable reason to terminate the franchise agreement, they may then repurchase the business, even without the franchisee's consent.
This protection is afforded to franchisees under RCW 19.100.180(2)(j), which is part of the Washington Franchise Investment Protection Act. This statute aims to protect franchisees from unfair practices by franchisors, ensuring that a franchisor cannot arbitrarily take back a franchise without a valid reason.