What is the exception to the rule that buy-back provisions are unlawful for Ledgers franchises in Washington?

According to Ledgers' 2025 Franchise Disclosure Document, in Washington, provisions that allow Ledgers to repurchase a franchisee's business during the franchise term without the franchisee's consent are generally unlawful.

However, there is an exception to this rule. Ledgers is permitted to repurchase the franchise if the franchise agreement is terminated for good cause. This means that if Ledgers has a legitimate reason to terminate the agreement, such as the franchisee's failure to meet performance standards or violation of the agreement terms, Ledgers can then repurchase the business.

This provision is important for prospective franchisees in Washington to understand. While the law protects them from arbitrary buy-backs, it also recognizes Ledgers' right to protect its brand and system by repurchasing a franchise that is not in good standing. Franchisees should carefully review the franchise agreement to understand what constitutes "good cause" for termination.