In Washington, can Canine Dimensions restrict a franchisee from soliciting or hiring employees of other Canine Dimensions franchisees?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- This release shall not apply to any claims which the Franchisee may have arising under (a) the California Franchise Investment Law or the California Franchise Relations Act; (b) the Hawaii Franchise Investment Law; (c) the Maryland Franchise Registration and Disclosure Law; (d) the Minnesota Franchise Act; (e) the New York Franchise Investment Law; (f) the North Dakota Franchise Investment Law; or (g) the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This release shall exclude claims arising from Franchisee's failure to pay any amounts due Canine Dimensions in the ordinary course of business. The parties expressly agree that this Mutual General Release Agreement will not apply to any claims Canine Dimensions may have under any Promissory Notes ancillary to the Franchise Agreement, or that pertain to other payment arrangements that the parties may have agreed upon.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Canine Dimensions Franchise Disclosure Document, the Mutual General Release Agreement contains a clause that has an exception for claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This means that the release signed by the franchisee does not prevent them from making claims under this Washington state law.
However, the FDD does not explicitly state whether Canine Dimensions can restrict a franchisee from soliciting or hiring employees of other Canine Dimensions franchisees in Washington. The document includes a Mutual General Release Agreement that lists several state franchise laws under which claims are excluded from the release, including the Washington Franchise Investment Protection Act.
Because the FDD does not provide a definitive answer regarding employee solicitation and hiring restrictions in Washington, it is important for a prospective franchisee to directly ask Canine Dimensions about this issue. Specifically, they should inquire whether there are any restrictions on soliciting or hiring employees of other franchisees, either within the franchise agreement itself or through other policies or agreements. Understanding these potential restrictions is crucial for assessing the operational aspects and potential challenges of managing a Canine Dimensions franchise in Washington.