Are there any provisions in the Cinnaholic franchise agreement 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 in Washington?

According to Cinnaholic's 2025 Franchise Disclosure Document, Washington state law addresses the franchisor's ability to repurchase a franchisee's business. Specifically, provisions in the franchise agreement or related agreements that allow Cinnaholic to repurchase the franchisee's business for any reason during the franchise term without the franchisee's consent are generally unlawful under Washington law (RCW 19.100.180(2)(j)), unless the franchise is terminated for good cause. This protection is explicitly outlined in the Washington Addendum to the Franchise Disclosure Document.

This means that Cinnaholic franchisees in Washington have certain rights that prevent the franchisor from unilaterally repurchasing their business without a valid reason. The law aims to protect franchisees from potential overreach by the franchisor, ensuring that a franchisee can only lose their business if there is a justifiable cause for termination. This "good cause" standard provides a level of security for the franchisee's investment and operation.

Prospective Cinnaholic franchisees in Washington should carefully review the franchise agreement and related documents, paying close attention to the conditions under which the franchise can be terminated. Understanding what constitutes "good cause" for termination is crucial. Franchisees should also be aware that Washington law (RCW 19.100.180) may supersede certain provisions in the franchise agreement, further safeguarding their rights. It is advisable to consult with an attorney experienced in franchise law to fully understand these protections and their implications.