In Washington, is Embassy Suites prohibited from restricting a franchisee from soliciting or hiring employees of another franchisee of the same franchisor?
Embassy_Suites 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 97–305)
What This Means (2025 FDD)
According to Embassy Suites' 2025 Franchise Disclosure Document, in the state of Washington, RCW 49.62.060 prohibits Embassy Suites from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of a franchisee of the same franchisor. This means that any provisions contained in the franchise agreement or elsewhere that conflict with this law are considered void and unenforceable in Washington.
This protection extends to both soliciting and hiring, ensuring Embassy Suites franchisees in Washington have the freedom to recruit talent from within the franchise network. This can be a significant advantage for franchisees looking to build their team with experienced personnel already familiar with the Embassy Suites system.
Prospective franchisees should be aware of this provision as it provides a degree of flexibility in staffing. However, it's important to consider the potential impact on other franchisees who may lose employees to recruitment efforts. Franchisees should consult with legal counsel to fully understand their rights and obligations under Washington law and the franchise agreement.