Under what conditions is it unlawful for Bumper Man to repurchase a franchisee's business in Washington?
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 for franchisees operating in Washington, it is unlawful for Bumper Man to repurchase a franchisee's business during the term of the franchise agreement if the franchisee does not consent to the repurchase, unless the franchise is terminated for good cause. This is based on Washington state law RCW 19.100.180(2)(j).
This provision protects Bumper Man franchisees in Washington from being forced to sell their business back to the franchisor without their agreement, ensuring they can only be bought out if there is a legitimate reason for termination, such as a breach of contract. This clause aims to prevent the franchisor from arbitrarily taking back successful franchise locations.
Prospective Bumper Man franchisees in Washington should understand this protection, as it provides a degree of security against unwanted buy-backs by the franchisor. However, franchisees should also be aware that if there is 'good cause' for termination, such as failure to meet performance standards or violation of the franchise agreement, Bumper Man may still be able to repurchase the business.