Under what conditions is it unlawful for Cr3 American Exteriors to repurchase a franchisee's business?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, it is unlawful for Cr3 American Exteriors to repurchase a franchisee's business under certain conditions, as specified by Washington state law. Specifically, if the franchise agreement or related agreements allow Cr3 American Exteriors to repurchase the franchisee's business for any reason during the term of the agreement without the franchisee's consent, it is unlawful.
However, there is an exception to this rule. Cr3 American Exteriors can repurchase the franchise if the termination is for a good cause. This means that if there is a legitimate reason to terminate the agreement, such as the franchisee's failure to meet performance standards or violation of the agreement terms, Cr3 American Exteriors may be able to repurchase the business.
This provision is based on Revised Code of Washington (RCW) 19.100.180(2)(j). This statute aims to protect franchisees from unfair practices by franchisors, ensuring that a franchisor cannot arbitrarily take back a franchise without a valid reason. Prospective franchisees should understand their rights regarding termination and repurchase, particularly if they are operating in or plan to operate in Washington state.