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
Financial contribution to the association of franchisees may not be stopped just like that
Financial contribution to the association of franchisees may not be stopped just like that
Seizure of ex-franchisee by franchisor not automatically permitted
Within a franchise relationship, disputes about money claims are unfortunately the order of the day.
Director’s liability at franchisor?
Director's liability at franchisor?
Interim termination (franchise) agreement
On 3 February last, the 's-Hertogenbosch Court of Appeal ruled in a case that may also be relevant for franchise practice.
Disclosure obligation versus obligation to investigate when purchasing a franchise company, Who bears the risk?
Disclosure obligation versus obligation to investigate when purchasing a franchise company, Who bears the risk?
Termination of a Franchise Agreement
Franchise agreements are usually concluded for a specific period of time.