What date was the Ashlie Harris lawsuit against Carls Jr. filed?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
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(2) Ashlie Harris v. CJ Star, LLC, Carl's Jr. Restaurants LLC, and DOES 1-10, (United States District Court, Eastern District of Washington, Spokane Division, Case No 2:18-cv-00247, filed August 3, 2018).
On August 3, 2018, Ashlie Harris, a former employee of a Carl's Jr. franchisee, filed a lawsuit in the federal district court for the Eastern District of Washington. The plaintiff alleged that certain provisions in the applicable franchise agreement between us and our franchisees violate federal and state anti-trust statutes as they allegedly restrict the ability of our franchisees or company-owned stores from soliciting or hiring the employees of other of our franchisees or company-owned stores. The complaint sought to certify a class of franchisee employees in the state of Washington and recover treble damages stemming from alleged underpayment of wages for current and former employees located in the state of Washington from July 12, 2014 to present. We denied that the provisions violate any law and filed a Motion to Dismiss the case. On or about April 1, 2019, the parties reached an agreement to settle the litigation with the following terms: (a) Defendants will pay Harris $5,000 and attorneys' fees in the aggregate amount of $20,000, (b) CJR has obtained amendments of the existing franchise agreements with Washington franchisees to remove non-solicitation/no-hire provisions, to the extent such provisions existed in
Source: Item 3 — LITIGATION (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a lawsuit was filed by Ashlie Harris, a former employee of a Carls Jr. franchisee, on August 3, 2018. The suit was filed in the federal district court for the Eastern District of Washington.
The plaintiff in the case, Ashlie Harris, alleged that certain provisions in the franchise agreement between Carls Jr. and its franchisees violated federal and state anti-trust statutes. Specifically, the claim was that these provisions restricted the ability of franchisees or company-owned stores from soliciting or hiring employees of other franchisees or company-owned stores.
The complaint sought to certify a class of franchisee employees in the state of Washington and recover treble damages stemming from alleged underpayment of wages for current and former employees located in the state of Washington from July 12, 2014, to the present. The case was settled on or about April 1, 2019, with Carls Jr. agreeing to pay Harris $5,000 and attorney's fees of $20,000 and to amend franchise agreements with Washington franchisees to remove non-solicitation/no-hire provisions.