In Washington, is Auntie Annes allowed to restrict a franchisee from soliciting or hiring employees of other Auntie Annes franchisees or employees of Auntie Annes itself?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.180, the Disclosure Document for Auntie Anne's Franchisor SPV LLC for use in the State of Washington is amended as follows:
If any of the provisions in the Disclosure Document or Franchise Agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the Disclosure Document or Franchise Agreement (as applicable) with regard to any franchise sold in Washington.
The State of Washington has a statute, RCW 19.100.180, that may supersede the Franchise Agreement in your relationship with the franchisor, including the areas of termination and renewal of your franchise.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, the Washington Addendum addresses inconsistencies between the franchise agreement and Washington law. Specifically, it states that if any provisions in the Disclosure Document or Franchise Agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail.
This means that any clause in the Auntie Annes franchise agreement that conflicts with Washington state law, including those laws pertaining to the solicitation or hiring of employees, will be superseded by the state law. Washington has a statute, RCW 19.100.180, that may supersede the Franchise Agreement in your relationship with the franchisor, including the areas of termination and renewal of your franchise.
Therefore, if Washington state law permits franchisees to solicit or hire employees from other franchisees or from Auntie Annes itself, any restrictions in the franchise agreement may not be enforceable. Prospective franchisees in Washington should consult with legal counsel to understand the specific implications of RCW 19.100.180 and other relevant Washington state laws regarding employee solicitation and hiring.
It is important for potential Auntie Annes franchisees in Washington to be aware of their rights and obligations under both the franchise agreement and Washington state law to ensure compliance and avoid potential disputes.