Under what circumstances can Bumper Man repurchase a franchisee's business in Washington, even without consent?
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, specifically Item 22 which addresses contract-related issues, there are specific regulations in Washington State (RCW 19.100.180(2)(j)) that govern Bumper Man's ability to repurchase a franchisee's business without their consent.
The FDD states that Bumper Man can only repurchase a franchisee's business in Washington without the franchisee's consent if the franchise agreement is terminated for "good cause." This means that Bumper Man cannot arbitrarily decide to buy back a franchise during its term unless there is a legitimate reason for termination as defined by Washington State law.
This provision protects Bumper Man franchisees in Washington from potentially unfair buy-back practices by ensuring that they can only lose their franchise if there is a justifiable reason. It is important for prospective franchisees to understand what constitutes "good cause" for termination under Washington law, as this will determine the circumstances under which Bumper Man could repurchase the business without their consent. Franchisees should seek legal counsel to fully understand their rights and obligations under Washington's franchise laws.