IFA Statement on Anti-Poaching Investigations

July 09, 2018

WASHINGTON, July 9—The International Franchise Association today released the following statement regarding an announcement that state attorneys general will be launching an investigation into the use of ‘anti-poaching’ provisions contained in franchise agreements.

“Franchising provides a path of employment, job training, and career advancement for employees on a large scale. As the preeminent stakeholders on this issue, IFA hopes the lawmakers are willing to engage with us in a constructive way to find a solution that protects workers’ rights and promotes economic growth. Though every individual brand is different, many companies have already eliminated anti-poaching clauses in their agreements and others are reviewing their own policies. IFA’s door remains open to lawmakers who want to work with us in a constructive fashion to ensure fairness for employees and employers alike," said IFA's Senior Vice President of Government Relations & Public Affairs Matt Haller.

IFA has stated its desire to engage on proposed legislation regarding worker protection and employee no-poaching provisions and has sent a letter to lawmakers on Capitol Hill pledging to work with legislators on this issue. Locally-owned franchise businesses are projected to grow by 1.9 percent this year, for a total of 759,000 units. That growth is projected to result in 8.1 million direct jobs and create $451 billion in economic output – 3 percent of US GDP.

About the International Franchise Association

Celebrating 58 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy and 2.5 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology and business development.