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If so, what are “reasonable” terms?
Asked on November 19, 2012 under Business Law, Utah
Answered 12 years ago | Contributor
Yes, a franchise non-compete is enforceable. As for reasonable terms: it varies with the situation and the industry/market. For, say, a restaurant franchise: a reasonable noncompete would probably be to not open any restaurant (franchise or not) which competes with the franchise (same market, same customers) in, say, a 10 mile radius. The length of time for the noncompete could also very, and would typically be 1 - 3 years for someone who'd been an owner of that franchise location.
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