Under what conditions is it unlawful for Bee Organized to repurchase a franchisee's business in Washington?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- 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 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, in Washington, it is unlawful for Bee Organized to repurchase a franchisee's business during the term of the franchise agreement if the franchisee does not consent to the repurchase, unless the franchise is terminated for good cause. This is based on RCW 19.100.180(2)(j). This protection is specifically outlined in the Washington Franchise Agreement Amendment.
This provision aims to protect franchisees from potentially unfair buy-back provisions that could allow Bee Organized to reclaim a successful franchise location without proper justification. The "good cause" stipulation ensures that there must be a legitimate reason, such as a breach of contract or failure to meet performance standards, for the termination and subsequent repurchase of the franchise.
For a prospective Bee Organized franchisee in Washington, this means that the franchise agreement cannot allow Bee Organized to repurchase the business at will. The franchisee has the right to refuse a buy-back unless there is a valid reason for termination, providing a degree of security and protecting their investment. This clause is particularly important for franchisees who invest significant time and resources into building their Bee Organized business.