Under what circumstances is it unlawful for Carvel to repurchase a franchisee's business in Washington?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, in the state of Washington, it is unlawful for Carvel to include provisions in its franchise agreements or related agreements that allow them to repurchase a franchisee's business for any reason during the term of the agreement without the franchisee's consent.
However, there is an exception to this rule. Carvel is permitted to repurchase a franchise if the franchise agreement is terminated for good cause. This means that if the franchisee has violated the terms of the agreement, Carvel can repurchase the business.
This provision is in accordance with RCW 19.100.180(2)(j), which governs franchise agreements in Washington. This law aims to protect franchisees from unfair practices by franchisors, ensuring that franchisees are not forced to sell their businesses back to the franchisor without a valid reason.