Under what circumstances is it unlawful for Angry Chickz to repurchase a franchisee's business in Washington?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- **9.
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 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, in the state of Washington, it is unlawful for Angry Chickz to repurchase a franchisee's business during the term of the Franchise Agreement without the franchisee's consent, unless the franchise is terminated for good cause. This protection is provided under RCW 19.100.180(2)(j). This clause ensures that Angry Chickz cannot arbitrarily take back a franchise location without a valid reason and the franchisee's agreement.
This provision is particularly important for prospective Angry Chickz franchisees in Washington as it safeguards their investment and business operations from being unilaterally reclaimed by the franchisor. "Good cause" typically refers to a significant breach of the franchise agreement by the franchisee, such as failure to meet performance standards, non-payment of royalties, or violation of brand standards. The inclusion of "good cause" allows Angry Chickz to protect its brand and system standards, while the franchisee is protected from arbitrary buy-backs.
This protection is specific to Washington due to the state's franchise investment protection laws. Franchisees should be aware of this provision and understand what constitutes "good cause" for termination under the franchise agreement. It is advisable for potential franchisees to seek legal counsel to fully understand their rights and obligations under Washington law and the franchise agreement.