Is a Chocolate Bash franchisee prohibited from soliciting employees of CB Franchising after the agreement terminates?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
13.3 Employee Recruitment. During the term of this Agreement and for one year after termination, transfer, or expiration of this Agreement, Franchisee shall not knowingly employ or seek to employ or engage as an independent contractor any person then employed by CB Franchising or its affiliates.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee is restricted from knowingly employing or attempting to employ anyone who is currently working for CB Franchising or its affiliates. This restriction applies both during the term of the Franchise Agreement and for one year after the agreement's termination, transfer, or expiration.
This provision is designed to protect Chocolate Bash's investment in its employees and prevent franchisees from poaching experienced staff who possess valuable knowledge of the Chocolate Bash system. It ensures that franchisees cannot directly benefit from the franchisor's employee pool shortly after their franchise relationship ends.
For a prospective Chocolate Bash franchisee, this means they must avoid actively recruiting or hiring employees of CB Franchising for one year after their franchise ends. Violation of this clause could lead to legal repercussions or other enforcement actions by Chocolate Bash. Franchisees should ensure their hiring practices comply with this restriction to maintain a good standing with the franchisor.