In Washington state, is Belocal permitted to restrict a franchisee from soliciting or hiring any employee of a Belocal franchisee?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in the state of Washington, Belocal is prohibited from restricting a franchisee from soliciting or hiring any employee of a Belocal franchisee. This stems from Washington state law RCW 49.62.060, which explicitly prohibits a franchisor from imposing such restrictions. Consequently, any provisions within the franchise agreement or any other document that conflict with this law are considered void and unenforceable in Washington.
For a prospective Belocal franchisee in Washington, this means that they have the freedom to solicit and hire employees from other Belocal franchises or from Belocal itself without facing legal repercussions from the franchisor. This can be a significant advantage, allowing franchisees to tap into a pool of experienced individuals already familiar with the Belocal system. It promotes a more open labor market within the franchise network in Washington.
This protection under Washington law ensures that franchisees are not unduly restricted in their ability to staff their businesses, fostering a competitive environment for talent acquisition within the Belocal franchise system in Washington. Franchisees should be aware of this provision and understand that any attempt by Belocal to enforce a non-solicitation clause against employees of other franchisees would be unenforceable in Washington.