In Washington, is Crdn allowed to restrict a franchisee from soliciting or hiring employees of the franchisor?
Crdn 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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Crdn's 2025 Franchise Disclosure Document, in the state of Washington, Crdn is prohibited from restricting a franchisee from soliciting or hiring employees of Crdn. Specifically, RCW 49.62.060 states that any provisions in the franchise agreement or elsewhere that attempt to restrict, restrain, or prohibit a franchisee from soliciting or hiring any employee of the franchisor are void and unenforceable in Washington.
This means that a Crdn franchisee in Washington has the freedom to solicit and hire employees of Crdn without facing legal repercussions or contractual penalties from the franchisor. This provision aims to promote fair competition and employee mobility within the franchise system in Washington.
Prospective franchisees in Washington should be aware of this protection, as it allows them to potentially recruit experienced personnel from Crdn to enhance their own operations. This could be a significant advantage for franchisees looking to quickly build a skilled team. However, franchisees should also be mindful of ethical considerations and potential impacts on their relationship with Crdn when engaging in such recruitment activities.