Is soliciting Expense Reduction Analysts' employees to discontinue employment prohibited after termination?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
y or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
- (a) Own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to or have any interest in or involvement with any other Competing Business:
- (iv) at the Premises;
- (v) within the Area; or
- (vi) within a 50-mile radius of the perimeter of:
- (A) the Area being granted hereunder; or
- (B) any other Area granted by the Franchisor in connection with an ERA Business as of the date of expiration or termination of this Agreement; or
- (b) Solicit business from customers of Yourformer ERA Business or contact any of Franchisor's suppliers or vendors for any competitive business purpose, nor directly solicit any of Franchisor'
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees are restricted from soliciting the company's employees to discontinue their employment for a period of twenty-four months after the termination, non-renewal, or transfer of the franchise agreement. This restriction applies regardless of the cause of termination. This includes not only direct employees of the franchisee but also extends to the franchisor's other employees, employees of the franchisor's affiliates, and employees of any other Expense Reduction Analysts system franchisees.
This provision aims to protect Expense Reduction Analysts' business and franchise network by preventing franchisees from poaching talent after their relationship with the company ends. The restriction applies to the franchisee, their principals, owners, guarantors, and any member of their immediate family. This broad scope ensures that the franchisee cannot circumvent the non-solicitation agreement through family members or business partners.
Expense Reduction Analysts emphasizes the importance of these covenants to protect the goodwill of the Expense Reduction Analysts business, other franchisees within the system, and the overall Expense Reduction Analysts system. To ensure compliance, Expense Reduction Analysts is entitled to seek injunctive relief in the event of an actual or threatened breach of this section, preventing the franchisee or related parties from violating the non-solicitation terms. This legal recourse underscores the seriousness with which Expense Reduction Analysts views these restrictions and their commitment to enforcing them.