factual

In Washington state, can Fat Shack restrict a franchisee from soliciting or hiring any employee of Fat Shack itself?

Fat_Shack Franchise · 2025 FDD

Answer 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, Washington state law protects franchisees from franchisors imposing restrictions on soliciting or hiring employees. Specifically, RCW 49.62.060 prohibits Fat Shack from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of another Fat Shack franchisee or any employee of Fat Shack itself.

This means that any clause within the franchise agreement or any other document that attempts to prevent a Fat Shack franchisee in Washington from hiring or soliciting employees from Fat Shack or its other franchisees is legally void and unenforceable. This protection is in place to ensure franchisees have the freedom to build their workforce without undue interference from the franchisor.

This provision is particularly important for prospective Fat Shack franchisees in Washington as it allows them to compete for talent within the Fat Shack system. It prevents Fat Shack from enforcing non-solicitation agreements that could limit a franchisee's ability to recruit experienced employees who may already be working within the Fat Shack network. This can be a significant advantage for franchisees looking to quickly establish a skilled team.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.