The limitation of a non-competition clause
Court of Almelo, preliminary relief judge
A former franchisee has a non-compete clause in his franchise agreement, which prohibits him from entering into a partnership with a party competing with the franchisor during and for two years after the termination of the franchise agreement. Apparently, the ex-franchisee intends to become an employee of such a competitor, because he asks the court to prohibit the franchisor from implementing the non-compete clause. The court takes a very formal approach and states that, partly in view of the termination of the franchise agreement, only the former franchisee can (still) implement the non-compete clause. In the opinion of the court, imposing an injunction on the franchisor is therefore not appropriate.
Mr JH Kolenbrander – Franchise lawyer
Ludwig & Van Dam Franchise attorneys, franchise legal advice Would you like to respond? Mail to coalbrander@ludwigvandam.nl
Other messages
The non-compete clause in combination with a rental agreement
Almost every franchise agreement nowadays includes a post-contractual non-compete clause.
Duty of care in the event of franchisee business difficulties
The issue at hand has recently made headlines as news of the issue has spread 'on the street'.
Franchisee is not eligible for debt restructuring due to lack of good faith
Franchisee is not eligible for debt restructuring due to lack of good faith
Termination of the continuing performance contract leads to price maintenance
Termination of the continuing performance contract leads to price maintenance
Google AdWords: a hot item
Trademark law, trade name, franchise knowledge center, franchise expert, restyling, franchisees.
Where does the franchisor’s duty of care begin?
Where does the franchisor's duty of care begin?