In Washington, can Stretch Zone restrict a franchisee from soliciting or hiring any employee of the franchisor?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
the franchise agreement or related agreements require a franchisee to reimburse the franchisor for court costs or expenses, including attorneys'
fees, such provision applies only if the franchisor is the prevailing party in any judicial or arbitration proceeding.
-
- Noncompetition Covenants. Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, e
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 Stretch Zone's 2025 Franchise Disclosure Document, if you operate a franchise in Washington, Stretch Zone is prohibited from restricting you from soliciting or hiring any employee of Stretch Zone. Specifically, Washington state law RCW 49.62.060 states that franchisors cannot restrict franchisees from soliciting or hiring employees of either the franchisor itself or other franchisees within the Stretch Zone system.
This means that any clause in the franchise agreement or any other document that attempts to prevent you from hiring or soliciting Stretch Zone's employees is void and unenforceable in Washington. This protection is provided under Washington's Franchise Investment Protection Act.
This regulation ensures that franchisees in Washington have the freedom to recruit talent, even from within the Stretch Zone organization, promoting a competitive labor market. It also prevents Stretch Zone from unduly restricting the growth and staffing capabilities of its franchisees in Washington.