Can I hire employees to operate my Bimbo Foods Bakeries Distribution franchise?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
e extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
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 s
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 66)
What This Means (2025 FDD)
According to the 2025 Bimbo Foods Bakeries Distribution FDD, franchisees have the ability to hire employees. Item 23 references Washington state law, stating that a noncompetition covenant is void and unenforceable against an employee of a franchisee if the employee's annualized earnings exceed $100,000, adjusted annually for inflation. This implies that franchisees can indeed hire employees, but any non-compete agreements with those employees are subject to certain limitations based on their income.
Additionally, Item 23 states that a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee if the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). This further supports the idea that franchisees can engage both employees and independent contractors to support their Bimbo Foods Bakeries Distribution business.
Item 23 also mentions that 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. This means Bimbo Foods Bakeries Distribution franchisees have the freedom to hire employees from other franchisees or from the franchisor itself, without restrictions from the franchisor. This provides franchisees with a broader pool of potential employees and promotes a competitive labor market within the Bimbo Foods Bakeries Distribution franchise system.