Is Belocal allowed to restrict a franchisee from soliciting or hiring employees of other franchisees in Washington?

According to Belocal's 2025 Franchise Disclosure Document, Belocal is prohibited from restricting a franchisee in Washington from soliciting or hiring employees of other Belocal franchisees. This protection is explicitly stated in the Washington Addendum to the Franchise Disclosure Document. Specifically, RCW 49.62.060 prohibits Belocal from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of a franchisee of the same franchisor. Any conflicting provisions in the franchise agreement are considered void and unenforceable in Washington.

This means that a Belocal franchisee in Washington has the freedom to recruit and hire employees from other Belocal franchises without facing legal repercussions from Belocal. This can be a significant advantage for franchisees looking to expand their workforce or acquire experienced personnel familiar with the Belocal system.

However, franchisees should be aware of other potential restrictions, such as non-competition covenants, that may apply to employees or independent contractors. These covenants are void and unenforceable against an employee if their earnings from the party seeking enforcement, when annualized, exceed $100,000 per year, and for independent contractors, this threshold is $250,000 per year. Franchisees should consult with legal counsel to ensure compliance with all applicable laws and regulations regarding employee solicitation and hiring practices in Washington.