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.
Can a franchisor restrict me from competing after the franchisee/franchisor relationship ends?
Your franchisor may restrict you from competing with the franchise business after your franchise agreement has ended, but only if the restrictions are reasonable. These type of restrictions are fairly common in franchise agreements and the reasoning for your franchisor wishing to include such restrictions is that it is likely to have provided you with confidential information, know-how and goodwill which they will want to protect. The restriction is likely to take the form of a restrictive covenant, which is an agreement between two or more parties that one of the parties will not do something. Such restrictive covenants are only enforceable if they are considered reasonable and not contrary to the public interest. In a franchise agreement a franchisee will typically be prevented from carrying on a business that competes with its franchisor’s business and from approaching its customers and employees after the franchise agreement has expired. When considering the reasonableness of such a restraint, the courts will look at the geography, duration and the subject of the clause. In general, the geographical area of the covenant should be limited to the territory your franchise business operates in. The duration of the covenant should usually be for no longer than 12 months, although it can be reasonable for a franchisor to restrict the use of confidential information indefinitely.
You might also be interested in
I’ve received the franchise disclosure document. What are the questions I should ask the franchisor?
Answered by John Pratt
John Pratt writes: In the UK, there is no legal requirement for a franchisor to provide any... read more
I’m a franchisee with one brand, but I’m looking to invest in another. What should I tell my current franchisor – Am I duty-bound to inform them at all?
Answered by Louise Harris
Louise harris writes: It’s good to see a franchisee looking to expand – especially when they see... read more
I’m quite close to investing in a brand. How can I be certain that the expected revenue projections they’ve supplied me with are genuine?
Answered by Shelley Nadler
Shelley Nadler writes: There are many different ways in which franchisors present revenue projections. Franchisors may illustrate... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: Franchise resales may come about for a number of reasons. Often a franchisee will... read more
Exciting Franchise Opportunities
Companies to Consider
£22,000 - £25,000 per week
High street banks
Cash flow positive from month 4
Yes, via high street banks
The Spitting Pig Co
40% net profit on a turnover of £110,000
In house and high street banks
Crayola® Imagine Arts Academy™
Available upon request
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added about 2 hours ago | 2 min read
Added about 23 hours ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news