During the association with 1 800 Packouts, can a franchisee solicit employees of the Franchisor or other franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) directly or indirectly solicit for employment any person who at any time within the immediate past 12 months has been employed by us, Franchisor or its affiliates, or by any of Franchisor's franchisees.
**5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you may not, without our prior written consent:
- (b) solicit for employment any person who at any time within the immediate past 12 months has been employed by us, Franchisor or its affiliates, or by any of Franchisor's franchisees.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, as a 1 800 Packouts franchisee, you are restricted from soliciting employees of the franchisor or other franchisees during the term of your franchise agreement. Specifically, you are prohibited from directly or indirectly soliciting for employment any person who has been employed by 1 800 Packouts, its affiliates, or any of its franchisees within the immediate past 12 months. This restriction is in place to protect the franchisor's and franchisees' investment in their employees and to prevent the loss of trained personnel to other parts of the 1 800 Packouts system.
This non-solicitation clause is a standard practice in franchising to maintain stability within the franchise network. It prevents franchisees from poaching employees from each other or from the franchisor, which could disrupt operations and create competitive imbalances. The 12-month look-back period ensures that former employees who recently left the system are also protected from solicitation, preventing franchisees from circumventing the restriction by waiting a short period after an employee's departure.
However, it is important to note that in Washington state, RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington. Therefore, franchisees operating in Washington state may have more flexibility in hiring employees from within the 1 800 Packouts system.
After the association with 1 800 Packouts ends, the franchisee is still restricted from soliciting for employment any person who at any time within the immediate past 12 months has been employed by 1 800 Packouts, Franchisor or its affiliates, or by any of Franchisor's franchisees.