In Washington, can Extreme Art Studio restrict a franchisee from soliciting or hiring employees of other franchisees of the same franchisor?

According to the 2024 Extreme Art Studio Franchise Disclosure Document, in Washington, Extreme Art Studio cannot restrict a franchisee from soliciting or hiring employees of other Extreme Art Studio franchisees.

The FDD states that 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.

This means that any clause in the franchise agreement that attempts to prevent an Extreme Art Studio franchisee in Washington from hiring or soliciting employees from other Extreme Art Studio franchisees, or from the franchisor itself, is not legally enforceable. This addendum ensures that Washington franchisees have the freedom to recruit talent from within the Extreme Art Studio system, promoting competition and potentially improving staffing levels.

Prospective franchisees in Washington should be aware of this protection, as it allows them to compete for qualified employees within the Extreme Art Studio network. This can be a significant advantage in attracting and retaining skilled staff, contributing to the overall success of their franchise. Franchisees should consult with legal counsel to fully understand their rights and obligations under Washington law.