Is an Aw franchisee prohibited from inducing someone employed by the franchisor or its affiliate to leave their employment?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) employ or seek to employ any person employed by us or our affiliate, or otherwise directly or indirectly induce or seek to induce such person to leave his or her employment;
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees are restricted from employing or attempting to employ individuals who are currently employed by Aw or its affiliates. The franchise agreement explicitly states that franchisees cannot directly or indirectly induce or seek to induce such persons to leave their employment. This restriction is in place to protect Aw's workforce and prevent franchisees from poaching employees.
This provision means that as an Aw franchisee, you must not actively recruit or solicit current employees of the franchisor or its affiliates. This includes direct approaches, indirect offers, or any actions that could be interpreted as an attempt to persuade an employee to leave their current position with Aw. The restriction aims to maintain stability within the Aw organization and prevent franchisees from gaining an unfair advantage by leveraging the franchisor's existing talent pool.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their investment in training and development of their employees. It is important for prospective Aw franchisees to understand this restriction and ensure that their hiring practices comply with the terms of the franchise agreement. Failure to comply could result in a breach of contract and potential legal consequences.