In Minnesota, is Bambu allowed to restrict a franchisee from soliciting or hiring an employee of the franchisor or another franchisee?

According to Bambu's 2025 Franchise Disclosure Document, Minnesota law prohibits Bambu from restricting a franchisee from soliciting or hiring an employee of either Bambu itself or another Bambu franchisee. Specifically, any restrictions in the franchise agreement that would prevent a franchisee from soliciting or hiring such employees are deemed deleted in Minnesota. This protection is provided under Minnesota Statutes Section 181.991.

This means that a Bambu franchisee in Minnesota has the freedom to recruit and hire employees from Bambu or other Bambu franchises without facing legal repercussions from the franchisor. This can be a significant advantage for franchisees looking to build their team with experienced individuals already familiar with the Bambu system.

However, it is important for prospective franchisees to understand the full scope of Minnesota Statute Section 181.991 and how it interacts with other aspects of the franchise agreement. While Bambu cannot enforce restrictions on soliciting or hiring, other clauses in the agreement might still impact employee relations or competitive activities. Franchisees should consult with legal counsel to fully understand their rights and obligations under Minnesota law.