factual

Under what specific conditions are certain buy-back provisions unlawful for Best Brains franchises in Washington, according to RCW 19.100.180(2)(j)?

Best_Brains Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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, certain buy-back provisions in franchise agreements are unlawful in Washington State. Specifically, provisions that allow Best Brains to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent are unlawful under RCW 19.100.180(2)(j).

However, there is an exception to this rule. Such buy-back provisions are permissible if the franchise is terminated for good cause. This means that Best Brains can repurchase the franchise if there is a legitimate reason for terminating the agreement, such as the franchisee's failure to comply with the terms of the agreement.

This provision protects Best Brains franchisees in Washington from having their businesses arbitrarily repurchased by the franchisor during the franchise term. It ensures that Best Brains can only repurchase a franchise if there is a valid reason for termination, providing a level of security for the franchisee's investment and business operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.