Under what conditions 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 generally unlawful for Cinnabon to include provisions in franchise agreements that allow them to repurchase a franchisee's business during the term of the agreement without the franchisee's consent. However, there is an exception to this rule.
Specifically, Cinnabon can repurchase a franchise in Washington if the franchise agreement is terminated for good cause. This means that if the franchisee has violated the terms of the agreement or has engaged in conduct that harms the Cinnabon brand, Cinnabon may be able to repurchase the business, even without the franchisee's consent.
This provision is important for prospective Cinnabon franchisees in Washington to understand. It means that they have some protection against Cinnabon arbitrarily repurchasing their business. However, it also means that they could lose their business if they violate the franchise agreement or engage in harmful conduct. Franchisees should carefully review the franchise agreement to understand what constitutes "good cause" for termination.