In Washington, is Southern Steer allowed to restrict a franchisee from soliciting or hiring employees of other Southern Steer franchisees?
Southern_Steer 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 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, in Washington, Southern Steer is prohibited from restricting a franchisee from soliciting or hiring any employee of another Southern Steer franchisee. This protection is explicitly stated under Washington state law RCW 49.62.060. As a result, any provisions within the franchise agreement that attempt to impose such restrictions are considered void and unenforceable in Washington.
This means that a Southern Steer franchisee in Washington has the freedom to recruit and hire employees from other Southern Steer locations without facing legal repercussions from the franchisor. This could foster a more competitive labor market within the Southern Steer franchise system in Washington, potentially leading to improved employee compensation and opportunities.
However, franchisees should be aware that while they can solicit and hire employees from other Southern Steer locations, standard employment laws and practices still apply. This includes respecting any existing employment contracts or agreements an employee may have with their current employer. Franchisees should also consider the potential impact on their relationship with other franchisees when actively recruiting their employees.
Prospective franchisees in Washington should carefully review the franchise agreement and any related documents to ensure full understanding of their rights and obligations under state law. It's also advisable to consult with a legal professional to discuss the implications of RCW 49.62.060 and how it may affect their business operations as a Southern Steer franchisee.