Under what circumstances is it unlawful for Fat Shack to repurchase a franchisee's business in Washington?

According to Fat Shack's 2025 Franchise Disclosure Document, certain buy-back provisions within the franchise agreement are considered unlawful in Washington state under specific conditions. Specifically, it is unlawful for Fat Shack to repurchase a franchisee's business during the term of the franchise agreement if the franchisee does not consent to the repurchase, and the termination is not for good cause. This is in accordance with Revised Code of Washington (RCW) 19.100.180(2)(j).

This regulation protects Fat Shack franchisees in Washington from potentially unfair or coercive buy-back scenarios. Without this protection, Fat Shack could theoretically force a franchisee to sell their business back to the company at an unfavorable price or under duress. The "good cause" exception allows Fat Shack to repurchase the franchise if the franchisee has violated the franchise agreement or is not meeting the brand's standards.

Prospective Fat Shack franchisees in Washington should be aware of this protection and understand their rights regarding the sale or transfer of their business. It is important to note that this provision is specific to Washington state law. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.