In Minnesota, can Bambu restrict a franchisee from soliciting or hiring an employee of Bambu or another Bambu franchisee?

According to Bambu's 2025 Franchise Disclosure Document, Minnesota law impacts the enforcement of non-solicitation and non-hiring clauses. Specifically, Minnesota Statutes Section 181.991 prevents Bambu as the franchisor from restricting a franchisee's ability to solicit or hire employees from either Bambu itself or from other Bambu franchisees.

This means that any clauses within the franchise agreement that might suggest a restriction on a franchisee's ability to recruit or hire employees from within the Bambu system are considered unenforceable in Minnesota. Bambu acknowledges this by stating that any such restrictions in the Franchise Agreement are deemed deleted.

For a prospective franchisee in Minnesota, this is a beneficial provision. It allows greater freedom in recruiting and hiring, potentially providing access to experienced personnel already familiar with the Bambu system. However, franchisees should be aware that while they can solicit and hire, they also face the risk of other franchisees or Bambu itself recruiting their own employees.