What is the impact of RCW 19.100.180(2)(j) on Eos Worldwide's ability to repurchase a franchisee's business?
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 Eos Worldwide's 2025 Franchise Disclosure Document, RCW 19.100.180(2)(j) impacts the franchisor's ability to repurchase a franchisee's business in Washington state. 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 if Eos Worldwide has a legitimate reason to terminate the franchise agreement, they may be able to repurchase the business, even without the franchisee's consent.
For a prospective franchisee in Washington, this offers some protection against Eos Worldwide arbitrarily taking back the business. The franchisee has the right to operate their Eos Worldwide franchise unless there is a justifiable reason for termination, as defined by Washington law. This clause ensures that Eos Worldwide cannot force a buy-back without demonstrating good cause, providing a safeguard for the franchisee's investment and business operations.