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

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Article De Nationale Franchisegids: The consequences of providing an incorrect (turnover and profit) forecast by the franchisor – mr. K. Bastiaans – dated June 9, 2021

In many cases, prior to entering into a franchise agreement, ...

By mr. K. Bastiaans|09-06-2021|Categories: Franchise Knowledge Center / National Franchise and Formula Letter Publications|
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