What RCW section prohibits Cinnaholic from repurchasing a franchisee's business without consent in Washington, unless there is good cause for termination?
Cinnaholic 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 27–35)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, RCW 19.100.180(2)(j) prohibits Cinnaholic from repurchasing a franchisee's business in Washington without the franchisee's consent, unless the franchise is terminated for good cause. This means that Cinnaholic cannot arbitrarily decide to buy back a franchise location during the term of the agreement if the franchisee doesn't agree to it.
This protection ensures that Cinnaholic franchisees in Washington have some security in their investment and cannot be forced out of their business without a legitimate reason. "Good cause" typically refers to a breach of the franchise agreement by the franchisee, such as failure to meet performance standards or violation of brand standards.
Prospective Cinnaholic franchisees in Washington should carefully review the franchise agreement and related documents to fully understand their rights and obligations, as well as the specific conditions under which Cinnaholic can terminate the agreement for good cause. Understanding these provisions is crucial for making an informed decision about investing in a Cinnaholic franchise.