Franchise News
Applebee’s, Panera Among the Latest Franchises to Drop ‘No-Poach’ Policies
Eight more restaurant chains commit to removing the clause from franchise contracts under the threat of a lawsuit
A new wave of major restaurant chains announced legally binding agreements to end ‘no-poach’ provisions in franchise contracts that 11 state’s attorneys general deemed unlawful last month. Applebee’s, IHOP, Little Caesar’s, Jamba Juice, SONIC Drive-In, Five Guys, Church’s Chicken, and Panera are the latest franchise brands to join the change their ways in the face of a lawsuit, joining seven others that last month agreed to end the practice nationwide.
No-poach clauses prohibit workers from switching from one franchise location to another, which opponents say reduces competition and may violate antitrust laws. “These agreements prevent experienced workers from bargaining for better positions with better salaries,” a spokesman for California AG Xavier Becerra said in a statement to the LA Times.
Don’t Miss the Next Big Franchise Story
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
About the Author
Madeline Lena
FollowMaddie has spent her career in the media industry, serving in various editorial roles before migrating into a hybrid content strategy and PR role with No Limit Agency. Her passion for storytelling and love of writing help her create meaningful content on behalf of her clients and fulfill No Limit Agency’s mission to tell people-driven stories.
Maddie is a graduate of Saint Louis University, where she studied Communications with a focus in journalism and media studies as well as Sports Business. In her spare time, Maddie can be found exploring Chicago’s food scene, watching an NBA game or lamenting over her middling fantasy baseball team.
