Workforce

Applebee’s, Panera Bread and more vow to erase ‘no-poach’ franchise contracts

They join seven major chains that agreed last month to stop the practice, under threat of a lawsuit.
Photograph: Shutterstock

Eight more restaurant chains, including Applebee’s and Panera Bread, are removing “no-poach” provisions from their franchise contracts nationwide, avoiding potential legal action from the Washington state attorney general’s office.

The move follows a similar agreement from seven national restaurant brands last month, all of which vowed to erase any language from their franchise agreements prohibiting franchisees from recruiting employees of fellow franchisees.

Included in the second-round agreement are Applebee’s, Church’s Chicken, Five Guys, IHOP, Jamba Juice, Little Caesars, Panera Bread and Sonic Drive-In.

The agreement requires the brands to remove no-poach language from current and future contracts and to no longer enforce no-poach provisions included in franchise agreements.

“Businesses can’t rig the system to avoid competition,” Washington Attorney General Bob Ferguson said in an announcement Monday. “My goal is to eliminate no-poach clauses in the fast-food industry nationwide. This is a major step forward in achieving that goal, but we’re not done. Other fast food companies that use no-poach provisions are now on the clock to accept a similar deal or face litigation from my office.”

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

The ongoing dangers of third-party delivery

The Bottom Line: The parent company of Tender Greens, which filed for bankruptcy this week, is laying part of the blame on its heavier reliance on delivery orders.

Technology

As restaurant tech consolidates, an ode to the point solution

Tech Check: All-in-one may be all the rage, but there’s value in being a one-trick pony.

Financing

Steak and Ale comes back from the dead, 16 years later

The Bottom Line: Paul Mangiamele has vowed to bring the venerable casual-dining chain back for more than a decade. He finally fulfilled that promise. Here’s a look inside.

Trending

More from our partners