factual

Under what conditions is it unlawful for Body20 to repurchase a franchisee's business?

Body20 Franchise · 2025 FDD

Answer from 2025 FDD Document

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 23 — RECEIPT (FDD pages 74–251)

What This Means (2025 FDD)

According to Body20's 2025 Franchise Disclosure Document, specifically regarding franchisees in Washington, provisions that allow Body20 to repurchase a franchisee's business during the franchise term without the franchisee's consent are unlawful. However, this restriction does not apply if the franchise is terminated for good cause. This is based on Washington state law RCW 19.100.180(2)(j).

This means that Body20 cannot arbitrarily decide to buy back a franchise location simply because they want to, unless the franchisee agrees to it. This provision protects the franchisee's investment and business operations from being unilaterally taken over by Body20 without a valid reason. The "good cause" exception allows Body20 to repurchase the franchise if the franchisee has violated the franchise agreement or is not meeting the required standards.

For a prospective Body20 franchisee in Washington, this is a significant protection. It ensures that Body20 must have a legitimate reason, constituting "good cause," to repurchase the business. Without this, Body20 could potentially force a sale at an unfavorable time or price for the franchisee. It is important for franchisees to understand what constitutes "good cause" for termination under the franchise agreement and Washington law to fully understand their rights.

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.