A recent case1 has highlighted the courts reluctance to intervene in “rewriting†RC’s to make them enforceable. This means it is even more important to ensure that your RC’s are reasonable.
RC’s – the Law
The general rule is – a franchisor has a legitimate right to protect its interests in the territory where its franchisees operate – i.e. when a franchise comes to an end for a reasonable period of time the franchisor can prevent the former franchisee from competing with the incoming franchisee, and from poaching staff and/or employees etc.What is reasonable? Read on…