What happens to provisions in the Itan franchise agreement that conflict with the restrictions on soliciting or hiring employees 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, any provisions in the franchise agreement that conflict with Washington state law regarding the solicitation or hiring of employees are void and unenforceable in Washington. This is due to RCW 49.62.060, which prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from soliciting or hiring any employee of either another franchisee of the same franchisor or any employee of the franchisor itself.
This means that Itan franchisees in Washington have the freedom to recruit and hire employees from other Itan locations or from Itan corporate, regardless of any conflicting clauses in the franchise agreement. This protection ensures that franchisees are not unduly restricted in their ability to staff their businesses.
It is important for prospective Itan franchisees in Washington to understand this provision, as it directly impacts their ability to manage and grow their workforce. They should review the franchise agreement carefully, keeping in mind that any clauses that contradict RCW 49.62.060 are not enforceable in Washington.