In the recent case of Francotyp-Postalia v Whitehead and others the High Court considered whether to sever a non-compete clause from a franchise agreement.

Non-compete clauses (which are also referred to as restrictive covenants) help protect a franchisor from unfair competition from former franchisees. They may cover the non-solicitation of staff or customers and prevent competition with the franchise business. Such clauses are enforceable by a franchisor, or any other type of business, providing that they are reasonable.

Read the full article from Andrea Curtis courtesy of our strategic partner Birkett Long Solicitors.

http://www.birkettlong.co.uk/site/library/legalnews/do_your_noncompete_clauses_protect_your_franchise.html?