Franchise Noncompete Enforcement Is Unpredictable

Law360, New York (February 5, 2014, 3:06 PM EST) -- Recent cases involving attempted enforcement of covenants not to compete by franchisors show the unpredictability of the results in such cases. However, careful reading of the factual circumstances of the cases also supports the adage that “bad facts make bad law.” So it behooves franchisors to check whether they have a sympathetic case on the facts when trying to enforce their noncompetes.

In July 2013, in the case of Golden Crust Patties Inc. v. Bullock, Case No. 13-CV-2241, the U.S. District Court for the Eastern District...
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