factual

For C12 Group franchises in Washington, what is the franchisor prohibited from restricting regarding employees of other franchisees?

C12_Group Franchise · 2025 FDD

Answer 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, C12 Group is prohibited from restricting a franchisee in Washington from soliciting or hiring any employee of another C12 Group franchisee or any employee of C12 Group itself. This protection is explicitly stated under RCW 49.62.060, a Washington state law. Any conflicting provisions within the franchise agreement are considered void and unenforceable in Washington.

For a prospective C12 Group franchisee in Washington, this means they have the freedom to recruit employees from other C12 Group franchises or from the franchisor's corporate offices without facing legal repercussions from C12 Group. This can be a significant advantage in building a skilled team, as it allows franchisees to tap into a pool of individuals already familiar with the C12 Group system and potentially possessing valuable experience.

However, it's important to note that this provision does not prevent other franchisees' employees or C12 Group's employees from having pre-existing agreements (such as non-compete agreements) that might limit their ability to switch employers. The law specifically prevents C12 Group from enforcing restrictions, but it doesn't invalidate other contractual obligations an employee may have. A prospective franchisee should still conduct due diligence to ensure any potential hires are free from conflicting agreements.

This type of restriction is not uncommon in franchise agreements, as franchisors often seek to protect their investment in training and development. However, the Washington statute creates an exception to this general practice, giving franchisees more flexibility in staffing their businesses. Prospective franchisees should carefully consider the implications of this law and how it might impact their ability to attract and retain 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.