In Washington state, can Fat Shack restrict a franchisee from soliciting or hiring any employee of another Fat Shack franchisee?
Fat_Shack 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 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, if you operate a franchise in Washington state, Fat Shack cannot restrict you from soliciting or hiring employees from other Fat Shack franchises. This is due to RCW 49.62.060, a Washington state law that prohibits franchisors from imposing such restrictions.
This means that any clause in the franchise agreement or any other document that attempts to prevent you from hiring or soliciting employees from other Fat Shack franchisees is legally void and unenforceable in Washington. As a franchisee, you have the freedom to recruit talent from within the Fat Shack franchise network in Washington without fear of legal repercussions from the franchisor.
This provision aims to promote fair competition and employee mobility within the franchise system in Washington. It ensures that franchisees are not unduly restricted in their ability to staff their businesses and that employees have the opportunity to advance their careers by moving between different franchise locations. This could be a significant benefit for franchisees looking to build a strong team in a competitive labor market.