Franchise Attorney in Miami, Florida

How can I get around a Non-Compete or other restrictive covenants in my franchise agreement?

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Miami, FL commercial litigation attorney Robert Zarco talks about how you can get around a Non-Compete or other restrictive covenants in your franchise agreement. Non-compete agreements are increasingly becoming subjects of legal disputes. Employees working within a franchise who seek employment elsewhere may face challenges if bound by a non-compete, especially lower-compensated employees. For franchisees, the justification of a non-compete is enhanced if consideration or value was provided by the franchisor. However, when a franchisee, due to termination or the expiration of the franchise relationship, aims to compete in the same industry in a different state or market, they can challenge the franchisor’s attempt to restrict competition. The legitimacy of a non-compete is assessed based on factors such as clarity, reasonableness in scope (e.g., distance), and reasonableness in duration (e.g., time). Generally, longer durations and broader scopes make non-compete provisions less likely to be enforceable. These circumstances require careful consideration and appropriate weighing.

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