Can Cool Binz restrict a franchisee in Washington from soliciting or hiring employees of other Cool Binz franchisees?

The 2025 Cool Binz Franchise Disclosure Document includes additional disclosures for the state of Washington. Specifically, it states that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, may supersede the Franchise Agreement in the franchisee's relationship with Cool Binz, including areas of termination and renewal. Additionally, court decisions may also supersede the Franchise Agreement in these areas.

However, the FDD does not explicitly state whether Cool Binz can restrict a franchisee in Washington from soliciting or hiring employees of other Cool Binz franchisees. The document does discuss non-disclosure and confidentiality agreements for a franchisee's employees, which aim to protect trade secrets and customer relationships. These agreements prevent employees from servicing or soliciting customers of the franchisee's business, but this does not directly address the solicitation or hiring of employees from other Cool Binz franchises.

Because the FDD does not provide a definitive answer on this specific restriction, it is important for a prospective Cool Binz franchisee in Washington to seek clarification from the franchisor regarding any policies or legal limitations on soliciting or hiring employees from other Cool Binz franchise locations. Understanding these potential restrictions is crucial for workforce planning and ensuring compliance with both the franchise agreement and Washington state law.