In Washington, under what circumstances is it unlawful for Jersey Mikes to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent?

According to Jersey Mikes's 2025 Franchise Disclosure Document, Washington state law has specific regulations regarding the franchisor's ability to repurchase a franchisee's business. Provisions in the franchise agreement that allow Jersey Mikes to repurchase a franchisee's business during the franchise term without the franchisee's consent are generally unlawful under RCW 19.100.180(2)(j).

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 there is a legitimate and justifiable reason for terminating the agreement, such as the franchisee's failure to comply with the terms of the agreement, Jersey Mikes may be able to repurchase the business even without the franchisee's consent.

This provision protects Jersey Mikes franchisees in Washington from potentially unfair buy-back provisions, ensuring they can only be forced to sell their business back to the franchisor if there is a valid reason for terminating the franchise agreement. Prospective franchisees should carefully review the franchise agreement and understand what constitutes "good cause" for termination to fully understand their rights and obligations.