In Washington, is Dog Haus allowed to restrict a franchisee from soliciting or hiring any employee of another Dog Haus franchisee?
Dog_Haus 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 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Washington state law RCW 49.62.060 prohibits Dog Haus from restricting a franchisee from soliciting or hiring any employee of another Dog Haus franchisee. This means that any provisions within the franchise agreement that attempt to prevent a franchisee in Washington from hiring employees of other Dog Haus franchisees are considered void and unenforceable. This protection is specifically outlined in the Washington Addendum to the Franchise Agreement.
This regulation provides franchisees in Washington with greater flexibility in staffing their locations. It allows them to recruit experienced employees from within the Dog Haus franchise network, potentially benefiting from their existing knowledge of the Dog Haus system. This can be a significant advantage for franchisees looking to quickly build a skilled team.
However, prospective franchisees should be aware that this also means their own employees may be targeted by other Dog Haus franchisees in the area. While this can create a competitive labor market, it also underscores the importance of fostering a positive work environment and offering competitive compensation to retain valuable employees. Franchisees should proactively manage employee relations to minimize the risk of losing staff to other Dog Haus locations.
In summary, while Dog Haus cannot legally prevent its Washington franchisees from soliciting or hiring employees from other franchisees, individual franchisees must focus on employee retention strategies to maintain a stable and skilled workforce. This aspect of Washington state law promotes employee mobility within the Dog Haus system but also necessitates careful management of human resources at the franchise level.