What conditions make a franchisor's repurchase of a Caring Transitions franchise unlawful in Washington?

According to Caring Transitions' 2025 Franchise Disclosure Document, provisions that allow Caring Transitions to repurchase a franchisee's business during the franchise term are unlawful in Washington under RCW 19.100.180(2)(j) if two conditions are met. First, the repurchase occurs for any reason without the franchisee's consent. Second, the franchise is not terminated for good cause.

This means that Caring Transitions cannot simply decide to buy back a franchise at will during its term unless the franchisee agrees to the repurchase. The only exception is if Caring Transitions has grounds to terminate the franchise agreement for a valid reason, such as the franchisee's failure to meet performance standards or violation of the agreement's terms. In such cases, a repurchase provision might be enforceable.

This protection is significant for prospective Caring Transitions franchisees in Washington. It prevents Caring Transitions from arbitrarily taking back a successful franchise location without a legitimate reason, safeguarding the franchisee's investment and business operations. Franchisees should carefully review the franchise agreement to understand what constitutes "good cause" for termination to fully understand their rights under Washington law.