What actions is Budget prohibited from taking regarding employees of franchisees or the franchisor in Washington, according to RCW 49.62.060?
Budget 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 23 — RECEIPTS (FDD pages 80–426)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, RCW 49.62.060 in Washington State prohibits Budget from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of another Budget franchisee or any employee of Budget itself. This means Budget cannot enforce any provisions in the franchise agreement or other documents that would prevent a franchisee from hiring employees from these sources.
For a prospective Budget franchisee in Washington, this is a significant benefit. It allows them to freely recruit and hire qualified individuals who may already be familiar with the Budget system, either from working at another franchise location or directly for the franchisor. This can reduce training costs and improve the overall quality of their workforce.
This provision ensures that franchisees have the freedom to build their teams without undue interference from Budget. Any conflicting terms in the franchise agreement are considered void and unenforceable in Washington, further protecting the franchisee's right to hire employees from within the Budget network.