What is the effect of RCW 19.100.180(2)(j) on Zoomin Groomin's ability to repurchase a franchisee's business?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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 17 — g. of the Disclosure Document is modified to state that, in addition to the grounds for immediate termination specified in Item 17.h., the franchisor can terminate upon written notice and a 60 day opportunity to cure for a breach of the Franchise Agreement. (FDD pages 51–65)
What This Means (2025 FDD)
According to the 2025 FDD, RCW 19.100.180(2)(j) impacts Zoomin Groomin's ability to repurchase a franchisee's business in Washington state. This Washington statute makes it unlawful for Zoomin Groomin 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: Zoomin Groomin can repurchase the franchise if the franchise agreement is terminated for good cause. This means that if Zoomin Groomin has valid grounds to terminate the agreement (such as the franchisee's failure to meet performance standards or violation of the agreement terms), they may be able to repurchase the business.
For a prospective Zoomin Groomin franchisee in Washington, this provides a degree of protection against the franchisor arbitrarily taking back the business. The franchisee has the right to refuse a repurchase unless there is a legitimate cause for termination. It is important for franchisees to understand what constitutes "good cause" for termination as defined in the franchise agreement and under Washington law.