Virtually all modern franchise agreements include a provision that restricts the franchisee’s ability to compete with the franchise system during the term of the agreement and for a specific period thereafter. Our lawyers have drafted and enforced these noncompete agreements for our franchisor clients in order to: (1) protect the goodwill associated with the franchisor’s trademarks; (2) protect confidential business information and training; (3) protect existing franchisees from unfair competition; (4) protect the integrity of the franchise system, and (5) provide the franchisor with an opportunity to “re-franchise” the territory free from interference by a former franchisee.
The lawyers in our Franchise & Distribution Practice Group have been instrumental in developing a vast body of case law enforcing noncompete agreements on behalf of our franchisor clients throughout the United States. In fact, our lawyers “wrote the book” on franchise noncompete law by editing the Second and Third Editions of “Covenants Against Competition in Franchise Agreements,” published by the ABA Forum on Franchising. With deep knowledge of the unique nature of the franchise relationship and mastery of the important nuances in franchise noncompete law, our lawyers have been very successful enforcing noncompete agreements and protecting franchise systems from the competitive activities of former franchisees.
Gray Plant Mooty is recognized as one of the leading corporate law firms in Minnesota and one of the top franchise firms in the world. Our roots go back to 1866. Today, we are a full-service firm with nearly 180 attorneys and offices in Minneapolis and St. Cloud, Minnesota; Washington, D.C.; and Fargo, North Dakota.