In Washington, under what specific conditions is a buy-back provision in a Bumper Man franchise agreement unlawful according to RCW 19.100.180(2)(j)?
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 the 2025 Bumper Man Franchise Disclosure Document, in the state of Washington, certain buy-back provisions within the franchise agreement are considered unlawful under RCW 19.100.180(2)(j). Specifically, any provision that allows Bumper Man to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent is unlawful.
However, there is an exception to this rule. Such a buy-back provision is permissible if the franchise is terminated for good cause. This means that Bumper Man can repurchase the franchise if there is a legitimate reason for terminating the agreement, such as the franchisee's failure to meet contractual obligations or violation of company policies.
This stipulation protects Bumper Man franchisees in Washington from potentially unfair or arbitrary buy-back scenarios, ensuring that their investment is secure unless there is a justifiable cause for termination. Prospective franchisees should carefully review the definition of "good cause" within the franchise agreement to fully understand their rights and obligations.