If the Focalpoint Coaching Franchise Agreement contains provisions restricting a franchisee's ability to solicit or hire employees, are those provisions enforceable in Washington?
Focalpoint_Coaching 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 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, any provisions within the Franchise Agreement that restrict a franchisee from soliciting or hiring employees of either another Focalpoint Coaching franchisee or Focalpoint Coaching itself are void and unenforceable in Washington state. This is due to the stipulations of RCW 49.62.060, which explicitly prohibits such restrictions.
This means that a Focalpoint Coaching franchisee in Washington has the freedom to recruit and hire employees from other Focalpoint Coaching locations or from the franchisor without facing legal repercussions based on the Franchise Agreement. This could be a significant advantage for franchisees looking to build their team with experienced individuals already familiar with the Focalpoint Coaching system.
However, it is important for prospective franchisees to understand the specific details of RCW 49.62.060 and how it may interact with other aspects of the Franchise Agreement. While the FDD states that the franchisor cannot restrict hiring from other franchisees or the franchisor itself, it does not elaborate on whether a franchisee can enforce non-compete agreements against their own former employees. A prospective franchisee should consult with a legal professional to fully understand their rights and obligations under Washington law.