factual

Can Bumper Man repurchase a franchisee's business in Washington for any reason during the term of the franchise agreement?

Bumper_Man 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 22 — CONTRACTS (FDD page 45)

What This Means (2025 FDD)

According to Bumper Man's 2025 Franchise Disclosure Document, if a Bumper Man franchise is located in Washington, the franchisor's ability to repurchase the franchisee's business during the franchise term is restricted. Specifically, provisions that allow Bumper Man to repurchase the franchise for any reason without the franchisee's consent are unlawful, unless the franchise is terminated for good cause. This protection is provided under Washington state law (RCW 19.100.180(2)(j)).

This means that Bumper Man cannot arbitrarily decide to buy back a franchise in Washington during its term simply because they want to. There must be a legitimate reason, or "good cause," for the termination that leads to the repurchase. This provision aims to protect franchisees from unfair practices where the franchisor could take back a successful business without proper justification.

For a prospective Bumper Man franchisee in Washington, this is a significant safeguard. It ensures that their investment and efforts in building the business are protected from the franchisor's potential whims. However, it's crucial to understand what constitutes "good cause" for termination, as that would be the determining factor in whether Bumper Man could legally repurchase the franchise. A franchisee should seek legal counsel to fully understand their rights and obligations under Washington state law and the franchise agreement.

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.