What restrictions are placed on Jersey Mikes regarding restricting a franchisee from soliciting or hiring employees of other franchisees or the franchisor in Washington state?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Non-Solicitation Covenants. 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 that conflicts with these limitations is void and unenforceable in Washington.
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, Washington state law RCW 49.62.060 places restrictions on Jersey Mikes regarding non-solicitation covenants. Specifically, Jersey Mikes cannot restrict or prohibit a franchisee from soliciting or hiring any employee of another Jersey Mikes franchisee or any employee of Jersey Mikes itself.
This means that any clause within the franchise agreement or any other agreement that attempts to prevent a Jersey Mikes franchisee in Washington from hiring employees from other franchisees or from Jersey Mikes is considered void and unenforceable. This modification is specific to Washington state, and franchisees in other states may be subject to different restrictions.
For a prospective Jersey Mikes franchisee in Washington, this is a beneficial modification. It allows greater flexibility in hiring and recruiting employees, potentially providing access to a more experienced workforce already familiar with the Jersey Mikes system. However, it also means that the franchisee may face similar competition from other franchisees and from Jersey Mikes corporate locations when trying to retain their own employees.