The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Can a franchisor enforce a clause saying I can’t be involved in a similar business up to 12 months a
It is an essential feature of all franchises that franchisees cannot make use of the information, knowledge and assistance that they have received during their franchise agreement to compete with the franchisor on termination of their franchise agreement. There is, however, a limit to a franchisor’s ability to prevent franchisees from competing. Non-compete clauses will only be enforceable in so far as they are reasonable - and it is for a judge to establish whether a clause is reasonable. Unlike the situation in an employment contract, where an employer cannot have protection from competition, franchisors can oblige their ex-franchisees not to compete and, accordingly, all franchisors impose noncompete obligations on their franchisees. Most commonly these obligations last for 12 months within the territory granted to a franchisee. Whilst the enforceability of such provisions will depend on how well they have been drafted, the type of business and the size of the territory, generally such provisions are likely to be enforceable. It is much less likely that post-termination restrictive covenants that last for more than 12 months or extend beyond the territory granted to a franchisee will be enforceable.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own The Little Foxes Club franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to The Little Foxes Club for further information!

Start your own You Me Sushi franchise
Yes
Find Out MoreDiscussed at interview

Request Free Information
Send a free enquiry to You Me Sushi for further information!

Start your own BforB - UK franchise
Yes
Find Out MoreCirca £200,000 AFTER fees

Request Free Information
Send a free enquiry to BforB - UK for further information!

Start your own The Design Print Distribution Group franchise
Yes
Find Out MoreTurnover circa £120,000. 30% profit...

Request Free Information
Send a free enquiry to The Design Print Distribution Group for further information!

Start your own I Am Döner franchise
Yes
Find Out More£10,000+VAT turnover per week, 20%...

Request Free Information
Send a free enquiry to I Am Döner for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added about 4 years ago | 2 min read
-
Instilling a kind culture
Added 10 hours ago | 2 min read
-
How to achieve seven-figure success
Added 4 days ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news