Under what circumstances is it unlawful for Moes Southwest Grill to repurchase a franchisee's business in Washington?

According to the 2025 FDD, Moe's Southwest Grill's ability to repurchase a franchisee's business in Washington is restricted by the Washington Franchise Investment Protection Act. Specifically, provisions in the franchise agreement that allow Moe's Southwest Grill to repurchase a franchisee's business during the franchise term are unlawful if the repurchase occurs for any reason without the franchisee's consent, unless the franchise is terminated for good cause. This is in accordance with RCW 19.100.180(2)(j).

This regulation protects franchisees in Washington from potentially unfair buy-back provisions that could allow Moe's Southwest Grill to reclaim a successful franchise location without proper justification, ensuring that franchisees are not arbitrarily deprived of their business investments. The "good cause" standard requires that any termination leading to a repurchase must be based on legitimate, justifiable reasons, providing a safeguard for franchisees.

For a prospective Moe's Southwest Grill franchisee in Washington, this means that the franchise agreement cannot grant Moe's Southwest Grill an unrestricted right to buy back the business. Any repurchase must be tied to a termination for good cause, protecting the franchisee's investment and business operations from arbitrary actions by the franchisor. This provision aims to balance the rights and obligations between the franchisor and franchisee, ensuring a fairer franchising relationship within the state of Washington.