Under what circumstances can Bumper Man repurchase a franchisee's business during the term of the agreement?

According to the 2025 Bumper Man FDD, a provision in the franchise agreement allows Bumper Man to repurchase a franchisee's business during the term of the agreement if the franchise is terminated for good cause. This is in accordance with Washington state law RCW 19.100.180(2)(j). Without termination for good cause, Bumper Man cannot repurchase the franchise without the franchisee's consent.

This buy-back provision is important for prospective franchisees to understand. It means that Bumper Man has the right to buy back the franchise if there is a valid reason for termination. The FDD does not define "good cause," so franchisees should seek clarification from Bumper Man on what constitutes "good cause" for termination under the franchise agreement.

It is also important to note that Washington state law RCW 19.100.180(2)(d) states that any provision requiring a franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful. Additionally, RCW 19.100.190 allows franchisees to seek treble damages under certain circumstances, meaning any provisions requiring franchisees to waive exemplary, punitive, or similar damages are void, unless executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2).

Prospective franchisees should carefully review the franchise agreement and related documents with legal counsel to fully understand their rights and obligations, especially regarding termination and repurchase provisions. Understanding the conditions under which Bumper Man can repurchase the franchise is crucial for making an informed investment decision.