Drafting Enforceable Noncompete Covenants in Franchise Agreements
Protecting Against Unfair Business Competition by Franchisees With Noncompete Provisions
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide guidance to business counsel for drafting clear and enforceable noncompete covenants in franchise agreements that protect franchisors from unfair competition and withstand court scrutiny, and for enforcing such clauses in court. The experienced panel will discuss the elements of effective noncompete provisions and review the latest case law developments regarding the enforceability of the clauses in franchise agreements.
- Policy reasons for and against noncompete agreements
- Differences between in-term and post-term noncompetes
- Best practices for drafting enforceable noncompete provisions in franchise agreements
- Review of recent court decisions on noncompete agreements between franchisors and franchisees
- Interplay of franchise noncompetes and nonsolicitation agreements
- Interplay with confidentiality agreements and trade secrets
- Bankruptcy of franchisee
- Enforceability against non-signatories
- Litigation strategies: how cases arise, typical strategies, TROs
- Differences between states regarding public policy of noncompetes
- Professionals and noncompetes
The panel will review these and other key issues:
- What key provisions are typically included in noncompete provisions of franchise agreements?
- How should noncompete covenants be drafted to avoid being considered unreasonable, overbroad and unenforceable by the courts?
- What lessons can counsel glean from recent case law to avoid and/or overcome enforcement challenges with noncompetes?
William G. Somerville
Mr. Somerville concentrates his practice in business litigation, including health care litigation, employment law and... | Read More
Mr. Somerville concentrates his practice in business litigation, including health care litigation, employment law and gaming law. In addition to defending employers in matters ranging from class action discrimination cases to wage and hour investigations, he has successfully handled a wide variety of complex and commercial cases on behalf of corporate litigants. He also has considerable litigation experience in the health care industry.He has also presented on trends and best practices for non-competes.Close
Rochelle (Shelley) Spandorf
Davis Wright Tremaine
Ms. Spandorf focuses her practice on business franchise and distribution issues, representing franchisors,... | Read More
Ms. Spandorf focuses her practice on business franchise and distribution issues, representing franchisors, manufacturers, licensors, suppliers, franchisees, and distributors in their domestic and international expansion and strategic development. She concentrates her practice on a broad spectrum of transactional and regulatory issues for clients in all industry sectors, and assists clients with their contracts and legal compliance matters, franchise sales compliance duties, and operating issues.Close
James M. Susag
Mr. Susag's trial practice focuses on franchise, dealer and contract disputes, and real estate, construction and... | Read More
Mr. Susag's trial practice focuses on franchise, dealer and contract disputes, and real estate, construction and land use. Some of his recent successes include enforcement of franchise and dealer agreements in Federal District Courts and in domestic and international arbitration. He is a frequent writer, public speaker and panelist on franchise law issues.Close
Mark S. VanderBroek
Nelson Mullins Riley & Scarborough
Mr. VanderBroek is experienced in franchise law and litigation, intellectual property litigation and... | Read More
Mr. VanderBroek is experienced in franchise law and litigation, intellectual property litigation and counseling, business litigation, and construction law and litigation. In the area of franchise law, he counsels clients on franchise disclosure, regulation, contracts, compliance, and starting up/modifying franchise systems, litigates franchise and business disputes for franchisors and franchisees, and defends vicarious liability claims against franchisors. He previously co-authored an article on non-compete covenants published in the ABA’s Franchise Law Journal, addressing trends in relation to enforcement of non-competes in franchise agreements.Close