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In Washington, is Embassy Suites allowed to restrict a franchisee from soliciting or hiring employees of another franchisee or the franchisor?

Embassy_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

RCW 49.62.060 prohibits us from restricting, restraining, or prohibiting you 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 97)

What This Means (2025 FDD)

According to Embassy Suites's 2025 Franchise Disclosure Document, Washington state law RCW 49.62.060 prohibits Embassy Suites from restricting a franchisee from soliciting or hiring employees of either another Embassy Suites franchisee or Embassy Suites itself. This means that any clause within the franchise agreement that attempts to prevent a franchisee in Washington from hiring employees from these sources is legally void and unenforceable.

For a prospective Embassy Suites franchisee in Washington, this is a significant benefit. It allows them to freely recruit and hire experienced staff who may already be familiar with the Embassy Suites system or the hospitality industry in general. This can reduce training costs and improve the quality of service at the franchisee's hotel.

However, franchisees should be aware that while they can solicit and hire employees from other franchisees or the franchisor, other laws regarding non-competition covenants may still apply. Specifically, RCW 49.62.020 states that a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). Therefore, franchisees should consult with legal counsel to ensure compliance with all applicable employment laws in Washington.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.