In Washington, is Fat Shack permitted to restrict a franchisee from soliciting or hiring employees of other Fat Shack franchisees?

According to the 2025 Fat Shack Franchise Disclosure Document, Fat Shack is prohibited from restricting a franchisee in Washington from soliciting or hiring employees of either another Fat Shack franchisee or Fat Shack itself. This protection is explicitly stated, referencing Washington state law RCW 49.62.060. Any clause within the franchise agreement that attempts to impose such restrictions is considered void and unenforceable in Washington. This means a Fat Shack franchisee in Washington has the freedom to recruit employees from other Fat Shack locations or from the franchisor without legal repercussions.

This provision ensures that Fat Shack franchisees in Washington are not unduly limited in their ability to staff their restaurants. It promotes a competitive labor market within the Fat Shack franchise system in Washington, allowing franchisees to attract talent from various sources. This can be particularly beneficial in areas where finding qualified employees is challenging.

For a prospective Fat Shack franchisee in Washington, this is a significant advantage. It means they can actively recruit experienced staff from other Fat Shack locations, potentially gaining employees already familiar with the brand's operations and culture. This can reduce training time and improve the overall efficiency of the new franchise. However, franchisees should still be mindful of maintaining positive relationships with other franchisees and Fat Shack when recruiting their employees.

It is important to note that this protection applies specifically to soliciting and hiring employees. Other aspects of non-competition, such as operating a competing business during the franchise term, may still be restricted under the franchise agreement. Franchisees should carefully review the entire agreement to understand all applicable restrictions and obligations.