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

According to Chesters's 2025 Franchise Disclosure Document, specifically the Washington Addendum, there are restrictions on Chesters repurchasing a franchisee's business in Washington. Provisions in the franchise agreement that allow Chesters to repurchase the franchisee's business for any reason during the term of the agreement without the franchisee's consent are unlawful. However, this does not apply if the franchise is terminated for good cause. This stipulation is pursuant to RCW 19.100.180(2)(j).

This means that Chesters cannot simply decide to buy back a franchise location during the franchise term unless the franchisee agrees to it. The exception to this rule is if Chesters terminates the franchise agreement for a valid reason, which would then allow them to repurchase the business. This provision is designed to protect franchisees from potentially unfair buy-back practices by the franchisor.

For a prospective Chesters franchisee in Washington, this is an important protection. It ensures that Chesters cannot arbitrarily take back a successful franchise location without a legitimate reason for terminating the agreement. Franchisees should carefully review the grounds for termination outlined in their franchise agreement to understand their rights and obligations in this regard.