How might RCW 19.100.180 affect the Cinnabon franchise agreement concerning termination and renewal?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
Franchisee Bill of Rights.** RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise.
There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor.
Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
- **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.
- **9.
Fair and Reasonable Pricing.** Any provision in the franchise agreement or related agreements that requires the franchisee to purchase or rent any product or service for more than a fair and reasonable price is unlawful under RCW 19.100.180(2)(d).
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, RCW 19.100.180, which is part of the Washington Franchise Investment Protection Act, has the potential to override specific terms within the Cinnabon franchise agreement, particularly those related to the termination and renewal of the franchise. This means that even if the franchise agreement outlines certain conditions or procedures for termination or renewal, the stipulations of RCW 19.100.180 could take precedence, offering different or additional protections to the franchisee.
For a prospective Cinnabon franchisee in Washington, this is a crucial consideration. It suggests that the franchisee's rights regarding termination and renewal are not solely defined by the franchise agreement but are also subject to the protections afforded by Washington state law. This could provide an added layer of security, potentially preventing Cinnabon from enforcing termination or non-renewal clauses that are deemed unfair or violate the statute.
Moreover, the FDD indicates that provisions within the franchise agreement that permit Cinnabon to repurchase the franchisee's business during the term without the franchisee's consent are unlawful under RCW 19.100.180(2)(j), unless the termination is for good cause. Similarly, any requirement for the franchisee to purchase or rent products or services at an unfairly high price is also unlawful under RCW 19.100.180(2)(d). Therefore, franchisees should be aware of these protections and consult with legal counsel to fully understand their rights under Washington law.
In essence, while the franchise agreement sets forth the contractual terms for the Cinnabon franchise, Washington law, specifically RCW 19.100.180, acts as a safeguard to ensure fair treatment of franchisees in matters of termination, renewal, and certain business practices. Franchisees should carefully review both the franchise agreement and the relevant state laws to be fully informed of their rights and obligations.