Restaurant Brands International to review 'no-poach' franchise agreements
The so-called no-poach clause — in which franchisees sign agreements prohibiting them from hiring employees from other franchisees — is common, but has recently caused concern it may stifle wages and prompted a rethinking of practices by large operators. “Franchisees invest heavily in training their team members and they have always shared an interest in encouraging their best talent to stay with their restaurants,” she said in a statement. However, the parent company indicated it is aware of recent questions surrounding the practice. The practice came into the spotlight after two Princeton University academics released a working paper in late 2017 that examined documents from the year 2016 for all franchisors with more than 500 outlets in the U.S. and found that 58 per cent of contracts included such a clause. A&W Canada, Church’s Chicken, Denny’s, Domino’s Pizza, Five Guys, Little Caesars, Panera Bread, and Pizza Hut’s parent company Yum Brands did not respond. Neither did Arby’s, Carl’s Jr., Cinnabon and McDonald’s, which are among the seven companies that recently committed to ending the practice in the U.S. Dunkin’ Donuts, whose parent company also owns Baskin-Robbins, said it doesn’t include the clause.
Story Sourcesbusiness.financialpost.com 680news.com thechronicleherald.ca news1130.com 660news.com 570news.com timescolonist.com vancourier.com medicinehatnews.com burnabynow.com