Under what conditions is it unlawful for Black Bear Diner to repurchase a franchisee's business in Washington?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Restaurant and shall operate its Franchised Restaurant in full compliance with all applicable federal, state, city, local and municipal laws, statutes, ordinances, rules and regulations.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Black Bear Diner Franchise Disclosure Document, the document does not provide specific details on the conditions under which it would be unlawful for Black Bear Diner to repurchase a franchisee's business in Washington. The FDD excerpts focus on the franchisee's obligations, the franchisor's rights, and general legal compliance.
Item 17 outlines franchisee's covenants not to compete during and after the franchise term, but it does not address the franchisor's repurchase of the franchise. Item 13.6 requires the franchisee to comply with all applicable federal, state, city, local, and municipal laws, statutes, ordinances, rules, and regulations, but it does not specify scenarios where a repurchase would be unlawful.
A prospective Black Bear Diner franchisee in Washington should seek clarification from the franchisor regarding the specific conditions under which a repurchase of the franchise would be considered unlawful under Washington state law. This information is crucial for understanding the full scope of the franchise agreement and protecting their investment.