Under what circumstances is it unlawful for Jersey Mikes to repurchase a franchisee's business in Washington without the franchisee's consent?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, Washington state law provides specific protections to franchisees regarding the repurchase of their business. Provisions in the franchise agreement that allow Jersey Mikes to repurchase a franchisee's business during the term of the agreement without the franchisee's consent are unlawful.
However, there is an exception to this rule. Jersey Mikes is permitted to repurchase the franchise if the franchise agreement is terminated for good cause. This means that if Jersey Mikes has a legitimate and justifiable reason to terminate the agreement, they can repurchase the business, even without the franchisee's consent.
This protection is codified in Washington state law under RCW 19.100.180(2)(j). This statute aims to protect franchisees from unfair practices by franchisors, ensuring that a franchisee's investment is not arbitrarily taken away during the franchise term.