What is the impact 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
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- Franchisor's Business Judgement.
Provisions in the franchise agreement or related agreements stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, provisions in the franchise agreement stating that Zoomin Groomin may exercise its discretion based on reasonable business judgment may be limited or superseded by RCW 19.100.180(1). This statute requires that both parties, Zoomin Groomin and the franchisee, deal with each other in good faith.
In practical terms, this means that while the franchise agreement may grant Zoomin Groomin some level of discretion in making business decisions, this discretion is not absolute. Washington law mandates that all actions and decisions must be made in good faith, implying honesty and fair dealing.
For a prospective franchisee, this provides a degree of protection against potentially arbitrary or unfair decisions by Zoomin Groomin. It ensures that the franchisee can expect fair treatment and that Zoomin Groomin's business judgments will be scrutinized under the standard of good faith, as defined by Washington's franchise laws. This does not prevent Zoomin Groomin from making necessary business decisions, but it does require that those decisions be justifiable and made with the franchisee's interests in mind, alongside the franchisor's.