Under what conditions is it unlawful for Zoomin Groomin to repurchase a franchisee's business during the term of the franchise agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 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 Zoomin Groomin's 2025 Franchise Disclosure Document, specifically under Washington state law, it is unlawful for Zoomin Groomin to repurchase a franchisee's business during the term of the franchise agreement without the franchisee's consent, unless the franchise is terminated for good cause. This is based on RCW 19.100.180(2)(j).
This provision protects franchisees from being forced to sell their business back to Zoomin Groomin during the franchise term unless there is a legitimate reason for termination, such as a breach of contract by the franchisee. Without this protection, Zoomin Groomin could potentially pressure franchisees into selling their businesses back at unfavorable terms.
It is important for prospective Zoomin Groomin franchisees in Washington to understand this protection, as it ensures that they can only be required to sell their business back to the franchisor if the franchise agreement is terminated for good cause. This provision aims to prevent the franchisor from unfairly taking back successful franchise locations.