Franchise News
Arby’s, Buffalo Wild Wings and McDonald’s are among the brands agreeing to end the controversial practice after an investigation by attorneys general from 11 states
Early last week, attorneys general from 10 states and the District of Columbia announced their investigation into a number of foodservice franchises suspected of maintaining so-called no-poach agreements in their franchisee contracts. By Thursday, seven of the chains under investigation had agreed to eliminate the practice, according to an article in the New York Times.
All seven franchises — Arby’s, McDonald’s, Carl’s Jr., Jimmy John’s, Auntie Anne’s, Buffalo Wild Wings and Cinnabon — have pledged to strip no-poach clauses (also called no-switching clauses) from their existing contracts with franchisees, not only in Washington State, where the agreement was struck, but nationwide.
No-poach clauses prohibit workers from switching from one franchise location to another, which critics say reduces competition and may violate antitrust laws.
“My goal is to eliminate these provisions in all fast-food contracts in my state,” said Bob Ferguson, the attorney general in Washington, whose office reached the legally binding agreements with the seven chains.
Read the full article at nytimes.com.
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