Under what condition is a buy-back provision unlawful for a Beef O Bradys franchise in Washington?

According to Beef O Bradys's 2025 Franchise Disclosure Document, certain buy-back provisions within the franchise agreement are considered unlawful in Washington state. Specifically, provisions that allow Beef O Bradys to repurchase a franchisee's business during the term of the Franchise Agreement without the franchisee's consent are unlawful under RCW 19.100.180(2)(j).

However, there is an exception to this rule. Such buy-back provisions are permissible if the franchise is terminated for good cause. This means that if Beef O Bradys has a legitimate reason to terminate the franchise agreement, they may be able to repurchase the business, even without the franchisee's consent.

This stipulation is important for prospective franchisees in Washington to understand. It clarifies the circumstances under which Beef O Bradys can and cannot repurchase a franchise, providing some protection to the franchisee while also allowing Beef O Bradys to act in cases of justified termination. Franchisees should seek legal counsel to fully understand their rights and obligations under Washington law.