factual

What are Bambu prohibited from doing regarding employees of franchisees or the franchisor in Washington?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. 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 Agreement or elsewhere are void and unenforceable in Washington.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, a Washington Rider to the Franchise Agreement clarifies restrictions on Bambu regarding employees. Specifically, Bambu is prohibited from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of another Bambu franchisee or any employee of Bambu itself. This protection is ensured by RCW 49.62.060, a Washington state law. Consequently, any provisions within the franchise agreement that conflict with this law are considered void and unenforceable in Washington state.

This means that a Bambu franchisee in Washington has the freedom to recruit and hire employees from other Bambu locations or from Bambu's corporate offices without facing legal repercussions from Bambu. This is a significant benefit for franchisees looking to expand their workforce by tapping into experienced talent within the Bambu system. It also prevents Bambu from enforcing non-solicitation or non-hiring clauses that might otherwise limit a franchisee's ability to hire qualified individuals.

However, it is important to note that this rider specifically addresses restrictions imposed by Bambu on franchisees. It does not cover potential restrictions that a franchisee might attempt to impose on its own employees. The document also mentions non-competition covenants and their enforceability based on employee earnings, but this is a separate issue from the franchisor's ability to restrict hiring between franchisees or from the franchisor itself.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.