What law governs the non-solicitation agreements for Stretch Zone franchisees in Washington?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Nonsolicitation Agreements. 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 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, for franchisees operating in Washington, non-solicitation agreements are governed by RCW 49.62.060. This statute specifically prohibits Stretch Zone from restricting a franchisee from soliciting or hiring employees of either another Stretch Zone franchisee or Stretch Zone itself.
This means that any clause within the franchise agreement or any other document that attempts to prevent a Stretch Zone franchisee in Washington from hiring or soliciting employees from other franchisees or from the franchisor is considered void and unenforceable. This protection is in place to ensure franchisees have the freedom to recruit talent without undue restrictions.
This statute is particularly relevant for prospective Stretch Zone franchisees in Washington as it provides them with more flexibility in staffing their locations. It allows them to tap into a pool of experienced individuals already familiar with the Stretch Zone system, potentially reducing training costs and improving operational efficiency. Franchisees should be aware of this protection and ensure their agreements comply with Washington law.