Under what condition is it unlawful for Chesters to repurchase a franchisee's business in Washington?

According to Chesters' 2025 Franchise Disclosure Document, in the state of Washington, it is unlawful for Chesters to repurchase a franchisee's business during the term of the franchise agreement if the franchisee does not consent to the repurchase, unless the franchise is terminated for good cause. This protection is afforded to franchisees under RCW 19.100.180(2)(j).

This provision aims to protect franchisees from potentially unfair buy-back provisions that could allow Chesters to reclaim the business without a legitimate reason or the franchisee's agreement. The "good cause" exception provides a balance, allowing for repurchase in situations where the franchisee has violated the terms of the agreement or otherwise acted in a way that justifies termination.

For a prospective Chesters franchisee in Washington, this means that the franchise agreement cannot force them to sell their business back to Chesters during the franchise term unless they agree to it or Chesters has grounds to terminate the agreement for good cause. This offers a degree of security and control over their investment. Franchisees should carefully review the definition of "good cause" in their franchise agreement to understand their rights and obligations fully.