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Franchise Noncompete Agreement

Franchise Non-Compete Agreement

Franchise agreements are designed to protect the franchisor and the franchise system. The agreement gives the franchisee certain rights and privileges, including the ability to open a franchised business using the franchisor’s intellectual property, systems, and brand. Franchise agreements also generally provide for in-term and post-term non-compete covenants. Most in-term and post-term non-compete covenants prohibit a franchisee from working or operating competitive independent businesses during the term of the agreement and at the conclusion of the franchise relationship. These provisions allow the franchisor to protect intellectual property and confidential business information, as well as provide the opportunity to refranchise the territory free from interference from a previous franchisee. These non-compete covenants protect the franchise system and, in turn, all franchisees in the system from brand damage.

Our attorneys have the transactional expertise to draft franchise agreements that protect our franchisor clients’ best interests and the litigation expertise to enforce the terms of the franchise agreement. With extensive knowledge of the unique nature of the franchise relationship and mastery of the important nuances in franchise noncompete law, our franchise attorneys have been very successful enforcing noncompete agreements and protecting franchise systems from the competitive activities of former franchisees.

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Whether you are exploring franchising for the first time or operating a well-developed franchise system, our franchise attorneys can answer your questions and advise you on the best course of action.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.