Under what condition is it unlawful for Cinnabon to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent?
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 the 2025 Cinnabon FDD, a specific condition exists under which it would be unlawful for Cinnabon to repurchase a franchisee's business. This condition is tied to the termination of the franchise agreement and is governed by Washington state law.
Specifically, if Cinnabon seeks to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent, such an action is unlawful if the franchise is not terminated for good cause. This provision is in accordance with Revised Code of Washington (RCW) 19.100.180(2)(j).
This stipulation protects Cinnabon franchisees in Washington from potentially unfair buy-back practices by ensuring that Cinnabon cannot arbitrarily repurchase a franchise during its term unless there is a legitimate reason for termination. Franchisees should be aware of this protection if their franchise agreement is subject to Washington law.