Is it permissible for Dryject to repurchase a franchisee's business without consent if terminated for good cause?

According to Dryject's 2025 Franchise Disclosure Document, under certain conditions, Dryject can repurchase a franchisee's business without their consent. Specifically, a provision in the franchise agreement allows Dryject to repurchase the franchisee's business if the franchise is terminated for good cause. This is in accordance with Washington state law (RCW 19.100.180(2)(j)).

This buy-back provision is only triggered if the termination is for "good cause." This means Dryject must have a legitimate reason for ending the franchise agreement, such as the franchisee's failure to meet performance standards, violation of the agreement terms, or other serious misconduct. The FDD does not define what constitutes "good cause," so prospective franchisees should seek clarification on this point.

This clause protects Dryject's interests by allowing them to regain control of a franchise location when a franchisee is not operating the business properly or is in violation of the franchise agreement. However, it also presents a risk to the franchisee, as they could lose their business if Dryject determines there is "good cause" for termination, potentially impacting the franchisee's investment and future income. Franchisees should carefully review the franchise agreement and seek legal counsel to fully understand their rights and obligations under the agreement, as well as the definition of "good cause" for termination.