Can Cool Binz restrict a franchisee in Washington from soliciting or hiring employees of the franchisor?
Cool_Binz 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 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, Cool Binz is restricted from preventing a franchisee in Washington from soliciting or hiring any employee of the franchisor. This is due to the stipulations outlined in RCW 49.62.060, which explicitly prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of the franchisor.
This protection for franchisees in Washington is a notable benefit, as it allows them to potentially recruit experienced personnel from Cool Binz itself. This could provide a franchisee with access to individuals already familiar with the Cool Binz system, potentially leading to more efficient operations and faster growth.
However, it is important to note that this protection is specific to Washington State due to state law. Franchisees in other states may not have the same right and could be subject to non-solicitation agreements that prevent them from hiring employees of Cool Binz. Therefore, prospective franchisees should carefully review the specific laws and regulations in their state before making a decision.