Where Franchise No-Poach Agreements Stand Today

Law360 (August 15, 2019, 9:21 PM EDT) -- Washington state's attorney general is forging ahead with a campaign against no-poach provisions in franchise agreements, cutting deals last week with four more chains to eliminate the practice, but with few courts weighing in so far, it is unclear which legal standard for judging the provisions will prevail.

The key question that remains largely unanswered is: Will no-poach provisions be treated as per se, or automatically, illegal and thus require no expensive economic analysis, or will their legality be weighed under the harder-to-prove rule of reason?

The Washington AG and the U.S. Department of Justice have staked out opposing views on...

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