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The Wall Street Journal Online

The BizBuySell Small Business Community Network

Franchise Agreements

Hi
I bought a franchise but have yet to open a location. It's been almost 2 yrs since I bought this franchise. It has a non-compete section that says Confidant will not , until expiration of 2 yrs after termination of the employment relationship between confidant and franchisor that employs him or her engage directly or indirectly with a competitive franchise.
But I never opened a location so I never started working with them. Can I go and work/operate with a company that competes with this franchisor?
Thanks
John
973-419-0756

Answers (1)
No User Photo
Don Barrick

The BAF Group LLC
MD

John, any attorney will need to see the entire agreement, before answering that. I am not an attorney, but I know enough about such agreements to make that statement. There may be other terminology in the agreemement that tells you whether or when the franchise agreement actually becomes active; paying them money may not be the key, if other terms indicate otherwise.
I know of an attorney in Baltimore that specializes in franchisee representation. He is very laid back, in many ways, and extremely informed on such issues. His name is David Cahn, and his number is 410-347-8700.
Good luck.

Web reference: www.bafgroup.com

Feb 18, 2011
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