What is the effect of RCW 19.100.180(2)(j) on Best Brains' ability to repurchase a franchise?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, RCW 19.100.180(2)(j) impacts Best Brains' ability to repurchase a franchise. Specifically, provisions in the franchise agreement that allow Best Brains to repurchase a franchisee's business during the franchise term without the franchisee's consent are unlawful unless the franchise is terminated for good cause. This is detailed in the Washington Addendum to the Franchise Agreement.
For a prospective Best Brains franchisee in Washington, this means that Best Brains cannot arbitrarily repurchase their franchise during the term. A repurchase is only permissible if the franchise agreement is terminated for a valid reason. This provision protects franchisees from losing their business investment without a justifiable cause.
This protection is significant because it ensures that Best Brains must have a legitimate reason for terminating the agreement and repurchasing the franchise, preventing potential abuse of power by the franchisor. Franchisees should ensure they understand what constitutes "good cause" for termination as defined in the franchise agreement to fully understand their rights under Washington law.