Are there any restrictions on Beef O Bradys' ability to repurchase a franchisee's business in Washington?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain Buy-Back Provisions. Provisions in franchise agreements or related agreements that permit us to repurchase your business for any reason during the
term of the Franchise Agreement without your 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 66–330)
What This Means (2025 FDD)
According to the 2025 Beef O Bradys FDD, Washington state law places restrictions on Beef O Bradys' ability to repurchase a franchisee's business. Specifically, provisions in the franchise agreement that allow Beef O Bradys to repurchase a franchisee's business for any reason during the term of the agreement without the franchisee's consent are unlawful under RCW 19.100.180(2)(j).
However, there is an exception to this restriction. Beef O Bradys is permitted to repurchase a Beef O Bradys franchise in Washington if the franchise is terminated for good cause. This means that if the franchisee has violated the franchise agreement or has failed to meet certain performance standards, Beef O Bradys may be able to repurchase the business.
This regulation aims to protect franchisees from unfair or arbitrary buy-backs by franchisors. Prospective Beef O Bradys franchisees in Washington should carefully review the franchise agreement and understand the conditions under which Beef O Bradys can terminate the agreement and repurchase the business. It is advisable to seek legal counsel to fully understand their rights and obligations under Washington state law.