Is an Aw franchisee prohibited from seeking to induce 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, as a franchisee, you are restricted from attempting to hire individuals employed by Aw or its affiliates. Specifically, during the term of the Franchise Agreement, you are prohibited from directly or indirectly inducing or seeking to induce any person employed by Aw or its affiliate to leave their employment.
This restriction means that you cannot actively recruit or encourage current employees of Aw to leave their positions and work for your franchise. This measure is likely in place to protect Aw's investment in its employees and to maintain stability within its workforce.
This type of clause is relatively common in franchise agreements to prevent franchisees from poaching experienced staff from the franchisor or other franchisees, which could harm the overall system. Violation of this clause could lead to legal repercussions and potential termination of the franchise agreement.