What is the standard for 'good cause' when Bumper Man terminates a franchise in Washington?
Bumper_Man Franchise · 2025 FDDAnswer 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 22 — CONTRACTS (FDD page 45)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, Washington state law impacts the franchisor's ability to repurchase a franchisee's business. Specifically, provisions in franchise agreements that allow Bumper Man to repurchase a franchisee's business during the term without the franchisee's consent are unlawful, unless the franchise is terminated for "good cause," as stated in RCW 19.100.180(2)(j).
This means that Bumper Man cannot freely buy back a franchise at will during its term unless there is a legitimate and justifiable reason that meets the standard of "good cause" under Washington law. This provision protects franchisees from potentially unfair or arbitrary buy-back actions by the franchisor.
It is important for prospective franchisees in Washington to understand what constitutes "good cause" in the eyes of Washington state law. While the FDD excerpt specifies that 'good cause' is required for Bumper Man to repurchase the franchise, it does not define what actions or circumstances would meet that standard. A potential franchisee should seek legal counsel to fully understand their rights and protections under Washington's Franchise Investment Protection Act.