Under what circumstances can Best Brains repurchase a franchisee's business 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 the 2025 Best Brains Franchise Disclosure Document, provisions in franchise agreements that allow Best Brains to repurchase a franchisee's business in Washington are generally unlawful. Specifically, Best Brains cannot repurchase a franchise for any reason during the term of the agreement without the franchisee's consent.
However, there is an exception to this rule. Best Brains is permitted to repurchase a franchise if the franchise agreement is terminated for good cause. This means that if a franchisee violates the terms of the franchise agreement, Best Brains may have the right to repurchase the business.
This provision is important for prospective franchisees in Washington to understand. It ensures that Best Brains cannot arbitrarily take back a franchise without a valid reason, providing some security for the franchisee's investment. However, it also means that franchisees must adhere to the terms of the franchise agreement to avoid the risk of termination and repurchase.