In Washington state, is Annex Brands allowed to restrict a franchisee from soliciting or hiring employees of other Annex Brands franchisees?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) 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.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to the 2025 FDD, Annex Brands is prohibited from restricting a franchisee in Washington from soliciting or hiring employees of either Annex Brands itself or other Annex Brands franchisees. This protection is explicitly stated in the Washington State Addendum within the franchise agreement.
Specifically, RCW 49.62.060, a Washington state law, makes any provisions in the franchise agreement that would restrict, restrain, or prohibit a franchisee from soliciting or hiring employees of another franchisee of Annex Brands, or from soliciting or hiring any employee of Annex Brands itself, void and unenforceable in Washington. This means that Annex Brands franchisees in Washington have the freedom to recruit and hire employees from within the Annex Brands network without contractual limitations.
This provision is a significant benefit for prospective Annex Brands franchisees in Washington, as it allows them to tap into a pool of experienced talent already familiar with the Annex Brands system. It also reflects a broader effort in Washington to protect employee mobility and prevent anti-competitive practices within franchise systems, as highlighted by the Assurance of Discontinuance (AOD) that Annex Brands entered into with the Washington State Office of the Attorney General regarding no-poaching provisions.