Under what conditions is it unlawful for Caring Transitions to repurchase a franchisee's business in Washington?
Caring_Transitions 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 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, certain buy-back provisions within the franchise agreement are considered unlawful in Washington. Specifically, provisions that allow Caring Transitions to repurchase a franchisee's business during the franchise term without the franchisee's consent are unlawful under RCW 19.100.180(2)(j).
However, there is an exception to this rule. Caring Transitions is permitted to repurchase the franchise if the franchise agreement is terminated for good cause. This means that if the franchisee has violated the terms of the agreement or has engaged in misconduct that warrants termination, Caring Transitions can repurchase the business.
This provision protects franchisees in Washington from having their businesses arbitrarily repurchased by Caring Transitions during the term of the agreement, ensuring that franchisees can only lose their business under specific circumstances. Prospective franchisees in Washington should carefully review the franchise agreement and understand what constitutes "good cause" for termination to fully understand their rights and obligations.