Franchisee in Need of a Restrictive Covenant Lawyer? Schedule a Free Consultation Today
Most franchise agreements contain two primary restrictive covenants: (i) a non-solicitation covenant, and (ii) a covenant not to compete. While these restrictive covenants are legally enforceable in most cases, there are exceptions. If you are a former franchisee, or if you are up against the end of your franchise agreement, you should speak with a restrictive covenant lawyer to find out if you can avoid enforcement of your franchise agreement’s restrictive covenants.
Understanding the Two Main Types of Restrictive Covenants in Franchise Agreements
What is a Non-Solicitation Covenant?
A non-solicitation covenant prohibits a franchisee from contacting its former customers post-expiration or post-termination. Typically, this prohibition applies even if the franchisee wishes to contact its former customers in relation to a non-competing business.
What is a Covenant Not to Compete?
A non-competition covenant prohibits a franchisee from owning or working for a business that competes with the franchisor’s company-owned stores or its remaining franchisees. These covenants can vary widely in scope and duration, and this can directly impact their enforceability.
What Can a Restrictive Covenant Lawyer Do for You?
If you are facing the challenges of doing business as a former franchisee subject to restrictive covenants, here is what restrictive covenant lawyer Jeffrey M. Goldstein can do to help:
A Restrictive Covenant Lawyer Can Assess the Validity of Your Franchise Agreement’s Restrictive Covenants
First, Mr. Goldstein can review your franchise agreement’s restrictive covenants in order to determine whether they are likely to be enforced under the laws that govern your agreement. Different states have different standards; and, with over 30 years of experience exclusively representing franchisees and dealers, Mr. Goldstein can offer deep insights into the potential outcomes of challenging your franchise agreement’s restrictive covenants.
Negotiate with Your Franchisor to Eliminate or Reduce Your Franchise Agreement’s Restrictive Covenants
Second, Mr. Goldstein can negotiate with your franchisor in order to attempt to eliminate or reduce the scope or duration of your franchise agreement’s restrictive covenants. In addition to challenging the validity of the restrictive covenants themselves, Mr. Goldstein may also be able to raise other issues in order achieve a favorable result.
Challenge the Enforceability of Your Franchise Agreement’s Restrictive Covenants in Arbitration or in Court
Finally, if necessary, Mr. Goldstein can take your case to arbitration or to court. If your franchisor is unwilling to negotiate a fair outcome, Mr. Goldstein can use his vast experience in franchise litigation to attempt to have your franchise agreement’s restrictive covenants set aside. In many cases, once formal dispute resolution proceedings have been initiated, franchisors will become more willing to negotiate in good faith.
Are You Facing the Consequences of Your Franchise Agreement’s Restrictive Covenants? Discuss Your Legal Rights with Attorney Jeffrey M. Goldstein
For more information about challenging the enforceability of your franchise agreement’s restrictive covenants, request a free initial consultation at the Goldstein Law Firm. To schedule an appointment with restrictive covenant lawyer Jeffrey M. Goldstein as soon as possible, call 202-293-3947 or inquire online now.