What is a "non-compete agreement" in a franchise agreement?

 

A: A non-compete agreement in a franchise agreement serves as an agreement between a franchisor and a franchisee advising the franchisee not to engage in competing activities for a certain time and geographic location. With non-compete agreements in a franchise it is especially important to define guidelines specifically as to what the restrictions against competing activities are during the term of the franchise and after the termination of the franchise.




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