Professional Service Agreement

AG Coalition Takes Aim at Franchise No-poaching Agreements

July 16, 2018

A coalition of 12 state Attorneys General (AGs) are taking on the practice by franchisors of using "no-poach" agreements in franchise contracts. The AGs are seeking information and documents from eight national fast food franchisors concerning these agreements, which restrict a franchisee’s ability to recruit or hire employees of another franchisee of the same chain. The AGs sent their letter to Arby’s, Burger King, Dunkin’ Donuts, Five Guys Burgers and Fries, Little Caesars, Panera Bread, Popeyes Louisiana Kitchen, and Wendy’s. The letter was led by Massachusetts Attorney General Maura Healey and signed by the Attorneys General of California, District of Columbia, Illinois, Massachusetts, Maryland, Minnesota, New Jersey, New York, Oregon, Pennsylvania, and Rhode Island.