factual

In Washington, is Boulder Designs allowed to restrict a franchisee from soliciting or hiring employees of other Boulder Designs franchisees?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee is not prohibited from soliciting or hiring other BOULDER DESIGN franchisee's employees. If Franchisee employs another BOULDER DESIGN franchisee's employee who has attended Franchisor's training within 12 months of the hire date with Franchisee, Franchisee shall pay to the other franchisee the then-current training fee of Franchisor plus the other franchisee's actual costs for sending its employee to training, including but not limited to travel costs, lodging, wages, and food.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Boulder Designs's 2025 Franchise Disclosure Document, a franchisee is generally not prohibited from soliciting or hiring employees of other Boulder Designs franchisees. However, if a franchisee hires an employee from another Boulder Designs franchise who has attended Boulder Designs's training within 12 months of being hired, the franchisee must pay the other franchisee the then-current training fee of Boulder Designs, as well as the other franchisee's actual costs for sending the employee to training. These costs include travel, lodging, wages, and food.

This policy aims to balance the franchisees' need for staffing flexibility with the investment that other franchisees make in training their employees. It allows franchisees to recruit talent from within the Boulder Designs system, but it also ensures that the franchisee who invested in the initial training is compensated for their expenses. This can help to maintain a fair and collaborative environment within the franchise network.

For a prospective Boulder Designs franchisee, this means that while you are free to hire employees from other franchises, you need to be aware of the potential costs involved if the employee has recently undergone training. It would be prudent to check the training history of any potential employee who is currently working for or has recently worked for another Boulder Designs franchisee to avoid unexpected expenses. This policy is not uncommon in franchising, as franchisors often seek to protect the investment that franchisees make in their employees.

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.