factual

In Washington, can Chem Dry restrict a franchisee from soliciting or hiring employees of the franchisor?

Chem_Dry Franchise · 2024 FDD

Answer 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 22 — CONTRACTS (FDD page 68)

What This Means (2024 FDD)

According to Chem Dry's 2024 Franchise Disclosure Document, Washington state law RCW 49.62.060 prohibits Chem Dry from restricting a franchisee from soliciting or hiring any employee of Chem Dry. Therefore, any provisions in the franchise agreement that conflict with this law are void and unenforceable in Washington. This ensures that Chem Dry franchisees in Washington have the freedom to solicit or hire employees of the franchisor without contractual limitations.

This protection extends specifically to the act of soliciting or hiring employees. It means Chem Dry cannot enforce any clause that would prevent a franchisee from actively seeking to employ or directly hiring someone who is currently working for Chem Dry. This is a notable advantage for franchisees as it allows them to tap into a pool of potentially experienced and knowledgeable individuals already familiar with the Chem Dry system.

This provision aims to promote fair competition and employee mobility within the franchise network. Franchisees in Washington should be aware of this protection, as it overrides any conflicting terms in the standard Chem Dry franchise agreement. It is important to note that while Chem Dry cannot restrict the solicitation or hiring of its employees by a franchisee, other aspects of the employment relationship may still be governed by standard employment laws and agreements.

Disclaimer: This information is extracted from the 2024 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.