What specific law governs the repurchase of a Best Brains franchise in Washington?
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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, provisions that allow Best Brains to repurchase a franchisee's business in Washington are governed by RCW 19.100.180(2)(j). This law states that Best Brains cannot repurchase a franchise during the term of the franchise agreement without the franchisee's consent unless the franchise is terminated for good cause.
This means that if a Best Brains franchisee in Washington is performing according to the franchise agreement, Best Brains cannot simply decide to buy back the franchise. The franchisee has the right to continue operating the business under the terms of the agreement. This provision protects the franchisee's investment and business operations from arbitrary buy-backs by Best Brains.
However, if the Best Brains franchise is terminated for "good cause," Best Brains may have the right to repurchase the business. The definition of "good cause" is critical here. Franchisees should seek legal counsel to understand what constitutes "good cause" under Washington law and how it applies to their specific franchise agreement. This ensures they are aware of their rights and the circumstances under which Best Brains could legally repurchase their franchise.