In Washington, is Chesters allowed to restrict a franchisee from soliciting or hiring employees of another Chesters franchisee?
Chesters Franchise · 2025 FDDAnswer 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 48–197)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, if a franchise is purchased or operated in Washington, Chesters is prohibited from restricting a franchisee from soliciting or hiring any employee of another Chesters franchisee. This protection is explicitly stated under RCW 49.62.060, which disallows franchisors from imposing such restrictions. Any conflicting provisions within the franchise agreement are considered void and unenforceable in Washington.
For a prospective Chesters franchisee in Washington, this means they have the freedom to recruit and hire employees from other Chesters locations without legal repercussions from the franchisor. This can be a significant advantage in securing experienced staff familiar with the Chesters system. It promotes a competitive labor market within the franchise network, potentially leading to better employee compensation and opportunities.
However, franchisees should be aware of ethical considerations and potential impacts on the relationship with other franchisees. While the law permits solicitation and hiring, maintaining professional courtesy and open communication within the Chesters network is advisable. This freedom does not negate the importance of building a positive and collaborative environment among franchisees.