Under what circumstances is it unlawful for Bumper Man to repurchase a franchisee's business?
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 the 2025 Bumper Man Franchise Disclosure Document, specifically Item 22 regarding contracts, there are certain conditions under which it would be unlawful for Bumper Man to repurchase a franchisee's business. These conditions are dictated by state law, specifically RCW 19.100.180(2)(j) in Washington state.
The FDD states that it is unlawful for Bumper Man to include provisions in its franchise agreements that allow them to repurchase a franchisee's business for any reason during the term of the agreement without the franchisee's consent. However, there is an exception to this rule: Bumper Man can repurchase the franchise if the franchise agreement is terminated for good cause.
This provision protects franchisees from arbitrary or unfair buy-backs by Bumper Man during the franchise term, ensuring that Bumper Man cannot simply take back a successful franchise without a legitimate reason. However, franchisees should carefully review the definition of "good cause" for termination in the franchise agreement to understand the circumstances under which Bumper Man could legally repurchase the business.