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.
What non-competition restrictions are placed on a franchisee once they cease being part of a franchise network?
Shelley Nadler writes:
It’s usually the case that a franchise agreement will contain provisions that prevent the outgoing franchisee from trading with the customers of the franchisee’s business and from carrying on competing business within the territory in which the franchisee’s business was operated.
On the expiry of the franchise agreement, the franchisor will seek to protect the knowledge the franchisee has acquired of the franchisor’s system and the goodwill generated by the franchisee’s operation of the business under the franchisor’s brand name.
There is also usually a restriction on the outgoing franchisee from carrying on a business that is similar to or which competes with the business of the franchise network in the territory in which the franchisee’s business was operated for a period of one year.
If there’s no territory referred to in the franchise agreement, the non-compete restriction usually applies to a radius from the premises where the franchisee carried on the business.
There is also usually a restriction on outgoing franchisees from soliciting customers of the franchisee’s business for one year after the termination of the franchise agreement, which would apply to customers who were during the period of one or two years prior to such termination regular customers of the franchisee’s business.
Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.
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
Companies to Consider
Average net profit margin 20%
Yes, third party
Guardian Angel Carers
Platinum Property Partners
£50,000 to £150,000
The Travel Franchise
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 weeks ago | 2 min read
Added 4 weeks ago | 2 min read
Added 4 weeks 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