What is the name of the Carvel affiliate that entered into a settlement agreement concerning 'no-poaching' provisions in franchise agreements?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
es to post a notice to employees about the disputed provision. The applicable states instituted actions in their courts to enforce the settlement agreement through Final Judgments and Orders, Assurances of Discontinuance, Assurances of Voluntary Compliance, and similar methods.
The People of the State of California v. Dunkin' Brands, Inc., (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. ("DBI"), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of "no-poaching" provisions in Dunkin' restaurant franchise agreements. The settling states and jurisdictions included California, Illinois, Iowa, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and the District of Columbia. A small number of franchise agreements in the Dunkin' system prohibit Dunkin' franchisees from hiring the employees of other Dunkin' franchisees and/or DBI's employees. A larger number of franchise agreements in the Dunkin' system contain a no-poaching provision that prevents Dunkin' franchisees and DBI from hiring
each other's employees.
Source: Item 3 — Litigation (FDD pages 27–28)
What This Means (2025 FDD)
According to the 2025 Carvel Franchise Disclosure Document, two Carvel affiliates, Dunkin' Brands, Inc. ("DBI") and Arby's Restaurant Group, Inc. ("ARG"), entered into settlement agreements with several states concerning "no-poaching" provisions. These provisions relate to restrictions on hiring employees from other franchisees or the franchisor.
Specifically, Dunkin' Brands, Inc. (DBI) entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of "no-poaching" provisions in Dunkin' restaurant franchise agreements. The settling states and jurisdictions included California, Illinois, Iowa, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, and the District of Columbia.
Arby's Restaurant Group, Inc. (ARG) also entered into a settlement agreement with multiple states regarding similar no-poaching provisions. These states included California, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Oregon and Pennsylvania. The agreements involved removing the disputed provisions from franchise agreements and refraining from enforcing them.