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Franchise Law Update

Commentary on Business and Legal Issues of Franchising

non-compete

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Reappraisal of Anti-Poaching and Non-Competes in Franchising (Part 2 of 2)

By Craig R. Tractenberg on July 1, 2021

So yesterday I discussed some background related to anti-poaching and non-compete law. Today, I explain why the decision in Pittsburgh Logistics Systems provides a helpful analogue to franchising.

Facts

The…
Continue Reading Reappraisal of Anti-Poaching and Non-Competes in Franchising (Part 2 of 2)

Posted in Legal Decisions

Reappraisal of Anti-Poaching and Non-Competes in Franchising (Part 1 of 2)

By Craig R. Tractenberg on June 30, 2021

Let’s review the status of activity restrictions in franchise agreements. Do they serve the purpose intended? Are they enforceable? Are they worth it? The Pennsylvania Supreme Court’s decision in Pittsburgh …
Continue Reading Reappraisal of Anti-Poaching and Non-Competes in Franchising (Part 1 of 2)

Posted in Legal Decisions

Just Signed! New Washington State Law Limits Use of Non-Competes and No-Poach Agreements

By Eleanor Vaida Gerhards on May 10, 2019

Yesterday, Washington’s Governor, Jay Inslee signed HB1450 [PDF] which targets the use of restrictive covenants in the State of Washington (the “Non-Compete Act”). The signing of the Non-Compete Act follows…
Continue Reading Just Signed! New Washington State Law Limits Use of Non-Competes and No-Poach Agreements

Posted in Drafting Tips, Legislative Updates

Drafting Matters: Do your non-competes bind the correct parties?

By Fox Rothschild LLP on November 30, 2017

A federal court in Colorado recently upheld a franchisor’s non-competition provision despite that state’s strong public policy against non-competes. The franchisor prevailed due to its thoughtful contract drafting and ability…
Continue Reading Drafting Matters: Do your non-competes bind the correct parties?

Posted in Articles, Drafting Tips, Legal Decisions

Drafting Matters: When non-competes and renewal provisions collide

By Fox Rothschild LLP on August 31, 2017

If a franchisor waives the non-compete provision in its current franchise agreement, can it enforce a non-compete when the franchise agreement is renewed? According to a recent decision by the…
Continue Reading Drafting Matters: When non-competes and renewal provisions collide

Posted in Articles, Drafting Tips, Legal Decisions, Startup and Emerging Franchisors

Hold That Mail: Franchisor Granted Temporary Restraining Order to Enforce Non-Compete

By Fox Rothschild LLP on February 21, 2017

The interpretation and enforcement of non-competition covenants is always a hot button issue and varies from state to state. In Our Town v. Michael Rousseau and Jennifer Rousseau, the…
Continue Reading Hold That Mail: Franchisor Granted Temporary Restraining Order to Enforce Non-Compete

Posted in Drafting Tips, Legal Decisions

Where Do Non-Compete Agreements Go from Here?

By John Gotaskie on November 15, 2016

Not long before the election, the Obama Administration issued a “call to action” statement in which it urged state governments to restrict many of the non-compete agreements that…
Continue Reading Where Do Non-Compete Agreements Go from Here?

Posted in Business Updates, Industry Updates

Walking the tightrope: Protecting multiple locations vs. overbroad non-competes

By Fox Rothschild LLP on April 12, 2016

Congratulations! Your franchise system has opened multiple locations across the state, region or maybe even country.  Now, how can you protect against a former franchisee competing with your other locations…
Continue Reading Walking the tightrope: Protecting multiple locations vs. overbroad non-competes

Posted in Articles, Drafting Tips, Legal Decisions

A Tale of Two Non-Competes: Why Drafting Matters

By Fox Rothschild LLP on December 17, 2015

2528605_sIn a recent blog, we cautioned readers that an overprotective non-compete can result in no protection at all.  In that case, Unlimited Opportunity, Inc. v. Waadah, a franchisor…
Continue Reading A Tale of Two Non-Competes: Why Drafting Matters

Posted in Articles, Drafting Tips, Legal Decisions

The third party to your franchise agreement: Congress?

By Fox Rothschild LLP on August 17, 2015

“It is the purpose of this Act to . . . govern franchise agreements . . . to the full extent consistent with the Constitution of the United States .

…
Continue Reading The third party to your franchise agreement: Congress?

Posted in Articles, Legislative Updates

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