What constitutes 'good cause' for termination of a Face Foundrie franchise in Washington, allowing for repurchase?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Washington state law impacts the franchisor's ability to repurchase a franchise. Specifically, provisions that allow Face Foundrie to repurchase a franchisee's business during the franchise term without the franchisee's consent are unlawful, unless the termination is for 'good cause'. This is per RCW 19.100.180(2)(j).
This means that Face Foundrie cannot simply decide to buy back a franchise at will during its term unless there is a legitimate reason that qualifies as 'good cause' under Washington law. The FDD does not define what constitutes 'good cause'.
Prospective Face Foundrie franchisees in Washington should consult with a legal professional to fully understand what constitutes 'good cause' for termination and repurchase under Washington law. This understanding is crucial to protecting their investment and rights as a franchisee.