Under what conditions is it unlawful for Moes Southwest Grill to repurchase a franchisee's business in Washington?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- **8.
Certain Buy-Back Provisions.** 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 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, Moes Southwest Grill's franchise agreement contains provisions regarding the franchisor's ability to repurchase a franchisee's business. In Washington, these provisions are subject to specific regulations under the Washington Franchise Investment Protection Act.
The FDD states that it is unlawful for Moes Southwest Grill to repurchase a franchisee's business for any reason during the term of the franchise agreement without the franchisee's consent. However, there is an exception to this rule.
Moes Southwest Grill is permitted to repurchase the franchise if the franchise is terminated for good cause. This means that if there is a legitimate reason for terminating the agreement, such as the franchisee's failure to comply with the terms of the agreement, Moes Southwest Grill can repurchase the business.