Can the franchisor repurchase the Cinnaholic franchisee's business for any reason during the term of the franchise?

According to Cinnaholic's 2025 Franchise Disclosure Document, certain buy-back provisions within franchise agreements that allow Cinnaholic to repurchase a franchisee's business for any reason during the franchise term without the franchisee's consent are unlawful. However, this is only applicable in the state of Washington, pursuant to RCW 19.100.180(2)(j), and does not apply if the franchise is terminated for good cause.

This means that outside of Washington, Cinnaholic's ability to repurchase a franchise for any reason may be permissible, depending on the specific terms of the franchise agreement and applicable state laws. The FDD specifies that in Washington State, a repurchase without good cause is not allowed, protecting franchisees from arbitrary buy-backs. Good cause includes the failure of the franchisee to comply with any lawful provisions of the franchise agreement and failure to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.

Prospective franchisees should carefully review the franchise agreement and any related agreements to understand the specific conditions under which Cinnaholic might repurchase the business. Franchisees should also consult with legal counsel to understand their rights and protections under state law regarding franchise termination and repurchase.