What are Itan franchisors prohibited from doing regarding employees of franchisees or the franchisor in Washington?
Itan 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 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisors operating in Washington State are legally restricted from preventing franchisees from soliciting or hiring employees from other Itan franchisees or from the franchisor itself. This protection is enshrined in RCW 49.62.060, a Washington state law. Any clause within the franchise agreement that attempts to limit a franchisee's ability to recruit or hire from these sources is considered void and unenforceable in Washington. This ensures franchisees have the freedom to build their teams without undue restrictions from Itan.
This provision aims to foster a competitive labor market within the Itan franchise system and between franchisees and the franchisor in Washington. It prevents the franchisor from imposing restrictions that could stifle the growth and development of individual franchise locations by limiting their access to qualified personnel. It also prevents the franchisor from hoarding employees and gives them the freedom to seek better opportunities with franchisees.
For a prospective Itan franchisee in Washington, this means they have the right to actively recruit and hire employees from other Itan locations or from Itan corporate, without fear of legal repercussions or contractual violations. This can be a significant advantage in attracting experienced and knowledgeable staff who are already familiar with the Itan system. However, franchisees should still be mindful of ethical considerations and professional courtesy when approaching employees of other franchisees or the franchisor.
It is important to note that while Itan cannot restrict franchisees from soliciting or hiring, standard employment laws and practices still apply. Franchisees must still comply with all applicable wage and hour laws, anti-discrimination laws, and other employment regulations. Additionally, any non-compete agreements between Itan and its corporate employees would still be in effect, potentially limiting a franchisee's ability to hire certain individuals.