Under what condition is it unlawful for Angry Chickz to repurchase a franchisee's business in Washington?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, it is unlawful for Angry Chickz to repurchase a franchisee's business in Washington if it occurs for any reason during the term of the franchise agreement without the franchisee's consent, unless the franchise is terminated for good cause. This is in accordance with RCW 19.100.180(2)(j).
This provision protects franchisees from potentially unfair buy-back practices by Angry Chickz during the franchise term. Without this protection, Angry Chickz could theoretically repurchase a successful franchise location for arbitrary reasons, leaving the franchisee without their business.
However, this protection does not apply if the franchise is terminated for "good cause." The definition of "good cause" is critical here. Franchisees should carefully review the franchise agreement and Washington state law to understand what constitutes "good cause" for termination, as this would be an exception to the restriction on buy-backs. It is also important to note that this provision is specific to Washington State due to the Washington Franchise Investment Protection Act.