Under what circumstances is it unlawful for Cinnabon to repurchase a franchisee's business in Washington?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, in the state of Washington, it is unlawful for Cinnabon 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 is based on RCW 19.100.180(2)(j).
This provision protects Cinnabon franchisees in Washington from potentially unfair buy-back provisions that could allow Cinnabon to reclaim the business without the franchisee's agreement, unless there is a justified reason for termination. This ensures that franchisees have some security in their investment and are not subject to arbitrary decisions by the franchisor to repurchase their business.
Prospective Cinnabon franchisees in Washington should carefully review the franchise agreement and related documents to understand the specific conditions under which Cinnabon can terminate the agreement for "good cause." Understanding these conditions is crucial for assessing the risks and benefits of investing in a Cinnabon franchise in Washington.