In Washington, can a Bang Cookies franchisor restrict a franchisee from soliciting or hiring employees of the franchisor or another franchisee?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
either in the State of Washington, or in a place mutually agreed upon at the time of the arbitration or as determined by the arbitrator.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
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- A release or waiver of rights executed by a franchisee shall not include rights under the Washington Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, rig
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, Washington state law impacts the enforceability of non-competition agreements. Specifically, a franchisor cannot restrict, restrain, or prohibit a franchisee from soliciting or hiring any employee of the franchisor or another franchisee within the Bang Cookies system. This protection is part of the Washington Franchise Investment Protection Act.
This means that a Bang Cookies franchisee in Washington has the right to solicit and hire employees from other Bang Cookies locations or from the franchisor itself, regardless of any non-solicitation clauses that might be present in the standard franchise agreement. This is a significant benefit for franchisees looking to build their team, as it expands the potential pool of qualified candidates to include individuals already familiar with the Bang Cookies system.
However, it's important to note that other aspects of non-competition agreements are also addressed under Washington law. For example, an employee non-compete covenant is unenforceable unless the employee's annual earnings exceed $100,000, and there is a presumption that any non-compete covenant lasting longer than 18 months is unreasonable. Additionally, any contractual provision requiring an employee to adjudicate a non-competition covenant outside of Washington State is void and unenforceable. These stipulations provide further protections for employees and franchisees operating in Washington.
Prospective Bang Cookies franchisees in Washington should carefully review the Washington State Franchise Agreement Amendment within the FDD and consult with legal counsel to fully understand their rights and obligations regarding non-competition and non-solicitation agreements. Understanding these specific state law provisions is crucial for managing employees and operating a franchise in compliance with Washington law.