Does the Minnesota Rider to the Bambu Nondisclosure and Noncompetition Agreement allow Bambu to restrict a franchisee from soliciting or hiring an employee of Bambu or another Bambu franchisee in Minnesota?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added to the end of Section 21.1:
Minnesota Statutes Section 181.991 prohibits a franchisor from restricting, restraining, or prohibiting in any way a franchisee from soliciting or hiring an employee of the franchisor or an employee of a franchisee of the same franchisor. Any such restrictions in Section 21.1.c are hereby deemed deleted.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Minnesota Statute Section 181.991 prohibits Bambu from restricting a franchisee from soliciting or hiring an employee of either Bambu itself or another Bambu franchisee. This protection is explicitly written into the Minnesota Rider.
This means that any clause within Bambu's standard Non-disclosure and Non-competition Agreement that would typically prevent a franchisee from hiring or soliciting employees from Bambu or other franchisees is rendered void and unenforceable in the state of Minnesota. Bambu acknowledges this by stating that any such restrictions in Section 21.1.c of the agreement are considered deleted for Minnesota franchisees.
For a prospective Bambu franchisee in Minnesota, this is a significant benefit. It allows them the freedom to recruit and hire qualified individuals who may already be working within the Bambu system, potentially bringing valuable experience and knowledge to their own franchise. This can be a competitive advantage in the labor market, as the franchisee is not limited by non-solicitation clauses that would otherwise restrict their hiring options.