In Washington, is Crisp & Green allowed to restrict a franchisee from soliciting or hiring employees of other franchisees of the same franchisor?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ed consents to be bound by all of its terms. | edges having read and understood this Addendum and | | CRISP & GREEN FRANCHISING LLC, a Minnesota limited liability company | (Name of corporation, limited liability company or partnership) | | By: | By: | | Print Name:Title: | Print Name: Title: | | 1 1110. | 11110. |
ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF WASHINGTON
This Addendum pertains to franchises sold in the State of Washington and is for the purpose of complying with Washington statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the Washington laws applicable to franchises and any regulations thereunder are met independently without reference to this Addendum.
- BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement dated _________, 20______ (the "Franchise Agreement"). This Addendum is annexed to and forms part of the Franchise Agreement. This Addendum is being signed because (a) Franchisee is domiciled in Washington; and/or (b) the Franchised Restaurant that Franchisee will operate under the Franchise Agreement will be located or operated in Washington; and/or (c) any of the offering or sales activity relating to the Franchise Agreement occurred in Washington.
2. WASHINGTON LAW.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document addendum for Washington, the document does not explicitly address whether Crisp & Green can restrict a franchisee from soliciting or hiring employees of other franchisees. However, the addendum does state that the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will prevail if there are conflicting laws. It also indicates that RCW 19.100.180 may supersede the franchise agreement, particularly in areas of termination and renewal.
Additionally, the addendum states that no statement signed by a franchisee can waive claims under any applicable state franchise law. This suggests that certain restrictions that might be in the standard franchise agreement could be unenforceable if they conflict with Washington law.
Therefore, a prospective Crisp & Green franchisee in Washington should consult with a legal professional to understand the specific implications of Washington's franchise laws regarding employee solicitation and hiring practices. It would be prudent to inquire with the franchisor about their interpretation of these laws and how they apply to the franchise agreement.