Are there specific conditions under which Bumper Man can repurchase a franchisee's business in Washington?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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, Washington state law RCW 19.100.180(2)(j) addresses the franchisor's ability to repurchase a franchisee's business. It states that Bumper Man cannot repurchase the franchisee's business for any reason during the franchise term without the franchisee's consent. However, there is an exception: Bumper Man can repurchase the business if the franchise is terminated for good cause.
This means that if Bumper Man has valid grounds to terminate the franchise agreement, they are legally permitted to repurchase the business. The FDD does not define what constitutes "good cause," so a prospective franchisee should seek clarification on this point. Without good cause, the franchisee must consent to the repurchase.
This provision is specific to Washington and aims to protect franchisees from arbitrary buy-backs by the franchisor. It ensures that Bumper Man cannot simply decide to take back a successful franchise location without a legitimate reason, providing some security for the franchisee's investment and efforts.