What is the impact of RCW 19.100.180(2)(j) on Eos Worldwide's ability to repurchase a franchise?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Certain Buy-Back Provisions. Provisions in the 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 are unlawful pursuant to RCW 19.100.180(2)(j), unless the franchise is terminated for good cause.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, for franchisees in Washington state, RCW 19.100.180(2)(j) impacts Eos Worldwide's ability to repurchase a franchise. Specifically, provisions in the franchise agreement that allow Eos Worldwide to repurchase a franchisee's business during the term of the agreement without the franchisee's consent are unlawful.
However, there is an exception: Eos Worldwide can repurchase the franchise if the termination is for good cause. This means that Eos Worldwide cannot arbitrarily decide to buy back a franchise during its term unless there is a legitimate reason for termination, as defined by Washington state law.
This protection ensures that Eos Worldwide franchisees in Washington have some security in their investment and cannot be forced to sell their business back to the franchisor without a valid reason. Prospective franchisees in Washington should understand what constitutes "good cause" for termination under Washington law to fully grasp their rights regarding potential repurchase by Eos Worldwide.