In Washington, is Chatime prohibited from restricting a franchisee from soliciting or hiring employees of other Chatime franchisees or Chatime itself?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, in the state of Washington, Chatime is prohibited from restricting a franchisee from soliciting or hiring employees of other Chatime franchisees or Chatime itself. This protection is explicitly stated in the Washington Amendment to the Chatime Franchise Agreement.
This means that Chatime franchisees in Washington have the freedom to recruit and hire employees from other Chatime locations or from Chatime itself without facing legal repercussions from the franchisor. This provision aims to promote fair competition and employee mobility within the Chatime franchise system in Washington.
Prospective franchisees in Washington should be aware of this protection as it can be a significant advantage in staffing their stores. It allows them to tap into a pool of experienced employees familiar with the Chatime system. Franchisees should carefully review the Washington Addendum to the Franchise Disclosure Document to fully understand their rights and obligations under Washington law.