For C12 Group franchises in Washington, what is the effect of RCW 49.62.060 on provisions restricting a franchisee from soliciting or hiring employees?
C12_Group 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 46–137)
What This Means (2025 FDD)
According to the 2025 FDD, for C12 Group franchises operating in Washington state, RCW 49.62.060 directly impacts any provisions within the franchise agreement that attempt to restrict a franchisee's ability to solicit or hire employees. Specifically, this Washington statute prohibits C12 Group from enforcing any clauses that would prevent a franchisee from soliciting or hiring employees of either another C12 Group franchisee or C12 Group itself.
This means that if the franchise agreement contains language that restricts a franchisee from hiring employees from other C12 Group locations or from C12 Group's corporate offices, those restrictions are considered void and unenforceable in Washington. A C12 Group franchisee in Washington has the right to solicit and hire employees from within the C12 Group network, regardless of any conflicting terms in the franchise agreement.
This provision provides Washington C12 Group franchisees with greater flexibility in staffing their businesses. It also ensures that employees have the freedom to pursue opportunities within the C12 Group system without being restricted by non-solicitation clauses. Prospective franchisees in Washington should be aware of this protection, as it could be a significant advantage in attracting and retaining qualified staff.