factual

What is the significance of RCW 19.100.180(2)(j) regarding Dryject's ability to repurchase a franchisee's business?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, RCW 19.100.180(2)(j) is significant for Washington franchisees. This statute places limitations on Dryject's ability to repurchase a franchisee's business. Specifically, Dryject cannot repurchase a franchise for any reason during the term of the franchise agreement without the franchisee's consent, unless the franchise is terminated for good cause. This provision aims to protect franchisees from potentially unfair buy-back practices by the franchisor.

For a prospective Dryject franchisee in Washington, this means that Dryject's ability to repurchase their business during the franchise term is restricted. Dryject can only repurchase the business if the franchisee agrees to it, or if Dryject has good cause to terminate the franchise agreement. This provides a level of security for the franchisee, ensuring they cannot be forced to sell their business back to Dryject without a valid reason or their consent.

This protection is particularly important because it prevents Dryject from arbitrarily deciding to take back a successful franchise location simply to operate it themselves or sell it to another party. The "good cause" requirement ensures that any termination and subsequent repurchase must be based on legitimate issues with the franchisee's operation of the business, such as failure to meet performance standards or violation of the franchise agreement. This statute does not apply to franchisees operating outside of Washington state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.