In Washington, is Engel & Volkers allowed to restrict a franchisee from soliciting or hiring employees of other franchisees or of the franchisor itself?
Engel_Volkers 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 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 63–71)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, Washington state law protects franchisees from franchisor-imposed restrictions on hiring. Specifically, Engel & Volkers is prohibited from enforcing any provision that would prevent a franchisee from soliciting or hiring employees of either another Engel & Volkers franchisee or of Engel & Volkers itself.
This protection is codified in Washington state law (RCW 49.62.060), and the FDD explicitly states that any conflicting provisions within the franchise agreement are void and unenforceable in Washington. This means that an Engel & Volkers franchisee in Washington has the freedom to recruit and hire employees from within the Engel & Volkers network without fear of legal repercussions from the franchisor.
This provision is particularly beneficial for franchisees looking to expand their operations or seeking experienced personnel familiar with the Engel & Volkers system. It promotes a competitive labor market within the franchise network and prevents the franchisor from unduly restricting a franchisee's ability to staff their business effectively. Prospective franchisees in Washington should be aware of this legal protection and ensure that their franchise agreement does not contain any clauses that contradict it.