For a Ledgers franchise in Washington, what is the exception to the rule that buy-back provisions are unlawful?

According to the 2025 Ledgers 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.

The exception is that Ledgers is allowed 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 repurchase the business.

This provision is important for prospective franchisees to understand because it clarifies the circumstances under which Ledgers can buy back the franchise. While the general rule protects franchisees from arbitrary buy-backs, the exception allows Ledgers to take action if the franchisee is not fulfilling their obligations under the agreement. Franchisees should carefully review the franchise agreement to understand what constitutes "good cause" for termination.