Under what conditions is it unlawful for Carvel to repurchase a franchisee's business in Washington?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
- **8.
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 the 2025 Carvel FDD, specifically the Washington Addendum, it is unlawful for Carvel to repurchase a franchisee's business in Washington under certain conditions. Provisions in the franchise agreement that allow Carvel to repurchase the franchisee's business for any reason during the term of the agreement without the franchisee's consent are unlawful.
However, there is an exception to this rule. Carvel is permitted to repurchase the franchise if the franchise agreement is terminated for good cause. This means that if there is a legitimate and justifiable reason for terminating the agreement, Carvel can repurchase the business, even without the franchisee's consent.
This provision is in accordance with RCW 19.100.180(2)(j), which is part of the Washington Franchise Investment Protection Act. This act aims to protect franchisees from unfair practices by franchisors. Franchisees in Washington should be aware of this protection, as it limits Carvel's ability to repurchase their business without a valid reason.