Under what condition is it unlawful for Chesters to repurchase a franchisee's business during the franchise term?

According to Chesters's 2025 Franchise Disclosure Document, specifically regarding Washington State law, it is unlawful for Chesters to repurchase a franchisee's business during the franchise term under certain conditions. If Chesters seeks to repurchase the business for any reason without the franchisee's consent, it is unlawful, unless the franchise is terminated for good cause. This provision is pursuant to RCW 19.100.180(2)(j).

This means that Chesters cannot arbitrarily decide to buy back a franchise location during the term of the agreement if the franchisee doesn't agree. The franchisee has the right to continue operating their business unless there is a legitimate reason for termination, which would then allow Chesters to repurchase the business. This protection is afforded to franchisees operating in Washington state.

This stipulation is important for prospective franchisees in Washington to understand, as it provides a degree of security against Chesters potentially taking back a successful location without proper justification. Franchisees should ensure they understand what constitutes "good cause" for termination, as defined by Washington law, to fully grasp their rights and obligations under the franchise agreement.