By now you’ve probably heard that the Federal Trade Commission (“FTC”) adopted a new rule severely restricting the use of non-compete agreements in the United States. You also might have
Continue Reading Franchising Is Safe from the National Ban on Non-Compete Agreements. Right?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)
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)
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
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?
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
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
In 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