In Washington, is Holiday Inn permitted to restrict a Crowne Plaza franchisee from soliciting or hiring employees of another franchisee of Holiday Inn?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
RCW 49.62.060 prohibits Holiday 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 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, Washington state law RCW 49.62.060 prohibits Holiday Inn (referred to as "Holiday" in the document) from restricting a Crowne Plaza franchisee from soliciting or hiring employees of another franchisee of the same franchisor. This means that any provisions within the franchise agreement that attempt to prevent a Crowne Plaza franchisee in Washington from hiring employees of another Holiday Inn franchisee are considered void and unenforceable.
This protection extends to both soliciting and hiring, providing Crowne Plaza franchisees with the freedom to recruit talent from within the Holiday Inn franchise network in Washington. This can be a significant advantage for franchisees looking to build a skilled team, as it removes potential barriers to accessing experienced personnel already familiar with the hospitality industry and the franchisor's systems.
However, it's important for prospective Crowne Plaza franchisees to understand that this protection is specific to Washington state law. Franchise agreements often contain clauses that restrict the solicitation or hiring of employees from other franchisees within the same system, but these clauses are superseded by RCW 49.62.060 in Washington. Franchisees should carefully review their franchise agreement and be aware of any provisions that may conflict with this state law.