What are some examples of situations where Chesters might repurchase a franchisee's business for 'good cause' in Washington?
Chesters 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 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, provisions that allow Chesters to repurchase a franchisee's business during the franchise term without the franchisee's consent are unlawful in Washington, unless the franchise is terminated for good cause. This is in accordance with RCW 19.100.180(2)(j).
This means that Chesters can only repurchase a Washington franchisee's business if there is a legitimate reason for terminating the franchise agreement. The FDD does not define what constitutes 'good cause'.
Prospective franchisees in Washington should carefully review the franchise agreement and any related documents with legal counsel to understand what specific actions or circumstances Chesters would consider 'good cause' for termination and subsequent repurchase of the business. Understanding these conditions is crucial for assessing the risks and obligations associated with the franchise.