factual

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

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 the franchisor'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 franchisee's ability to staff their business with the need to compensate other franchisees for their investment in training employees. It suggests that Boulder Designs recognizes the value of its training program and seeks to ensure that franchisees who benefit from it indirectly contribute to the costs incurred by the franchisee who initially provided the training.

It is important to note that while franchisees can hire from each other, there may be restrictions on soliciting or hiring employees directly from Boulder Designs itself. Section 6.2 restricts franchisees from employing or seeking to employ any person who is or has been within the previous 30 days employed by Franchisor or an Affiliate of Franchisor as a salaried managerial employee, or induce such person to leave his or her employment.

Prospective franchisees should carefully consider these conditions and potential costs when planning their staffing strategies. They should also clarify with Boulder Designs any specific restrictions on hiring employees from the franchisor's corporate operations to fully understand their obligations and potential liabilities.

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.