Under what circumstances is a Face Foundrie franchisor's repurchase of a franchisee's business unlawful in Washington?
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, in the state of Washington, it is unlawful for Face Foundrie to repurchase a franchisee's business during the term of the franchise agreement if the franchisee does not consent to the repurchase. However, there is an exception to this rule.
Specifically, Face Foundrie can repurchase the franchise if the franchise is terminated for good cause. This means that if Face Foundrie has a legitimate reason to terminate the franchise agreement, they are legally permitted to repurchase the business, even without the franchisee's consent.
This provision is based on Washington state law (RCW 19.100.180(2)(j)), which aims to protect franchisees from unfair practices by franchisors. Prospective Face Foundrie franchisees in Washington should carefully review the franchise agreement to understand what constitutes "good cause" for termination, as this will determine the circumstances under which Face Foundrie could repurchase their business.