Under what conditions is a buy-back provision unlawful for a Bumper Man franchise?
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, certain buy-back provisions within the franchise agreement are considered unlawful under specific conditions, particularly in relation to Washington state law.
The FDD states that if Bumper Man includes provisions that allow them to repurchase a franchisee's business at any time during the franchise term without the franchisee's consent, it is unlawful under RCW 19.100.180(2)(j). However, there is an exception: such a buy-back is permissible if the franchise is terminated for good cause.
In practical terms, this means that Bumper Man cannot arbitrarily decide to buy back a franchise location simply because they want to, unless the franchisee has violated the terms of the agreement and there is a legitimate reason for termination. This provision protects franchisees from losing their investment without a valid cause, ensuring a degree of fairness in the franchise relationship, at least within the legal framework of Washington state. Prospective franchisees should carefully review the conditions under which Bumper Man can terminate the agreement for 'good cause' to fully understand their rights and obligations.