The enforceability of a non-competition covenant is based on state law. Generally, and perhaps uniformly, non-competitions are disfavored under the law. Hence they are very narrowly construed. Restrictive covenants on employment may not be used to bar individuals from entire
The Federal FTC Franchise Disclosure Rule prohibits franchisors from sharing, discussing, giving, or showing prospective franchisees financial performance information unless the information is contained in the franchisor’s franchise disclosure document (FDD). What about after the franchise agreement is signed? All
State laws very as to when the franchise registrationexpire. Some states only require a one-timefilings or exemptions. Other state franchiseregistrations and exemptions must be renewed yearly. Annual Filing Required One Time Filing Required California Connecticut Florida Georgia Hawaii
If you ask Walmart what the cost of using someone else Trademark, the answer is $9.5 million. Pursuant to the case of Variety Stores, Inc. v. Wal-Mart Stores, Inc.[i] Walmart was sued for the use of the Variety Store’s trademark
Franchisee as commonly asked to sign a general release of claims when entering to a franchise agreement when to transfer a franchise, when renewing a franchise, and when entering to a settlement agreement. Under a general release of claims, franchisees
The Federal Trade Commission (FTC) drafter of the Franchise Disclosure Rule, which requires the delivery of the Franchise Disclosure Document to prospective franchisee is looking for comments. The comment requires part of the FTC periodic review of the cost and
It shall be an unfair or deceptive act or practice or an unfair method of competition and therefore unlawful and a violation of this chapter for any person to sell, rent, or offer to sell to a franchisee any product
Back in 1925, Congress passed a law allowing for the enforceability of arbitration clause in contracts. A written provision in . . . a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out
Almost universally, franchise agreements expressly state that the filing of a claim in bankruptcy is grounds for immediate termination of the franchise agreement. But, in reality, bankruptcy laws, prohibit the franchisor from terminating the franchise agreement based on the franchisee’s
Poaching in the employment realm is the act of scouting, soliciting, recruiting, and hiring employees already employed by another entity. The consequence of having a key employee poached can be a great hardship on the business, and it can create
