Under what conditions is it unlawful for Best Brains to 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 Best Brains's 2025 Franchise Disclosure Document, in the state of Washington, it is generally unlawful for Best Brains to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent. However, there is an exception to this rule.
The exception is that Best Brains can repurchase the franchise if the franchise agreement is terminated for good cause. This means that if the franchisee has violated the terms of the agreement or has otherwise acted in a way that justifies termination, Best Brains may be able to repurchase the business.
This provision is in accordance with RCW 19.100.180(2)(j), which governs franchise agreements in Washington. Prospective franchisees in Washington should carefully review the franchise agreement and related documents to understand their rights and obligations regarding the potential repurchase of their business by Best Brains.