For a Floyds 99 franchise in Washington, what is the relevant statute regarding non-competition covenants for employees?
Floyds_99 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 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 FDD, Washington state law RCW 49.62.060 addresses non-competition covenants related to employees. Specifically, this statute prevents Floyds 99 as the franchisor from restricting a franchisee's ability to solicit or hire employees of either another franchisee within the Floyds 99 system or employees of the franchisor itself.
This means that any clause within the franchise agreement or any other document that attempts to limit a Floyds 99 franchisee in Washington from hiring employees from these sources is legally void and unenforceable. This addendum ensures that franchisees in Washington have the freedom to recruit talent from within the Floyds 99 network, which could be a significant advantage for staffing their locations.
For a prospective Floyds 99 franchisee in Washington, this statute provides an advantage in recruiting and staffing. It allows them to target experienced individuals already familiar with the Floyds 99 system, potentially reducing training time and improving operational efficiency. However, franchisees should be aware that this also means their own employees could be targeted by other franchisees or by Floyds 99 corporate locations.