The Franchise Owner's most trusted news source

Log In / Register | Jul 22, 2018

Comments regarding this article:


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Anti-poaching issues

Thank you for the time you invested in reporting on our webinar.

Allow me to clarify a couple of statements. Although Attorney General Sessions has been asked by Senators Booker and Warren to investigate anti-poaching agreements in franchising and in other businesses, and although his antitrust division chief has stated that civil and criminal prosecutions will be forthcoming to address anti-poaching agreements, he did not issue the Civil Investigative Demands you mentioned.
Those were issued by the Washington State Attorney General, who is investigating an unknown number of franchisors, apparently in the restaurant industry, who have done business in Washington, and who have used some some form of anti-poaching agreement. It is his (rather perplexing) definition of of an anti-poaching agreement that you quoted in the lead paragraph.
Too many AGs from a Washington (DC and state)!

Finally, Quentin's Iowa accent was misunderstood.

You wrote: "The fourth arrangement is even more complicated when there is a fourth store owned by the franchisor. So, when the franchise agreement states the franchisees won't hire from other stores in the system, the franchisor is also agreeing it will not hire from other franchisees or the franchisor, so then they are deemed to be competitors. Wittrock said this is a situation that historically has been referred to as "dole distribution" where a franchisor or supplier operates at the same level as the franchisees or dealers. He said there is a separate analysis for that and we don't know how that will play out in this situation."
Quentin was actually referring to "dual distribution," a situation which arises when a franchisor or supplier sells through both franchised outlets and company-owned outlets.

Post new comment

This question is for testing whether you are a human visitor and to prevent automated spam submissions.