In Washington, what are Chem Dry franchisors prohibited from restricting or restraining a franchisee from doing regarding employees?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 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 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, in the state of Washington, Chem Dry is prohibited from restricting or restraining a franchisee from soliciting or hiring any employee of another Chem Dry franchisee or any employee of Chem Dry itself. This means that a Chem Dry franchisee in Washington has the freedom to recruit and hire employees from other Chem Dry locations or from the Chem Dry corporate entity without facing legal repercussions from the franchisor.
This protection is provided under Washington state law (RCW 49.62.060), and any provisions within the franchise agreement or other related documents that conflict with this law are considered void and unenforceable in Washington. This ensures that franchisees in Washington are not unduly restricted in their ability to staff their businesses.
For a prospective Chem Dry franchisee in Washington, this is a significant benefit. It allows them to tap into a pool of experienced individuals already familiar with the Chem Dry system, potentially reducing training costs and improving the quality of their workforce. However, it also means that the franchisee's own employees may be targeted by other franchisees or Chem Dry, creating a competitive labor market within the Chem Dry system in Washington.