Under what condition is a buy-back provision unlawful for a Beem Light Sauna franchise in Washington?
Beem_Light_Sauna Franchise · 2025 FDDAnswer from 2025 FDD Document
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 — RECEIPT (FDD pages 71–230)
What This Means (2025 FDD)
According to Beem Light Sauna's 2025 Franchise Disclosure Document, in the state of Washington, certain buy-back provisions within the franchise agreement are considered unlawful. Specifically, any provision that allows Beem Light Sauna to repurchase a franchisee's business during the franchise term without the franchisee's consent is unlawful under RCW 19.100.180(2)(j).
However, there is an exception to this rule. Such a buy-back provision is permissible if the franchise agreement is terminated for good cause. This means that if Beem Light Sauna has a legitimate and justifiable reason to terminate the agreement, they may repurchase the franchise, even without the franchisee's consent.
This stipulation protects Beem Light Sauna franchisees in Washington from potentially unfair buy-back scenarios, ensuring that their investment cannot be arbitrarily taken away during the franchise term unless there is a valid reason for termination. Prospective franchisees should understand what constitutes 'good cause' for termination under Washington law to fully grasp their rights and obligations.