• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Franchise Non-Compete Clauses

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

PDaWxMan

Junior Member
What is the name of your state? New Hampshire

I own 2 franchises. My agreement is up in December. The new agreement in which they drafted up is ridiculous. I will be making no money at all if I were to agree with it. What I want to happen is 1. They renew my contract according to the original terms. 2. Buy me out at fair market value or 3. Open as an independent. Option 3 is what I really want, except, I have a no compete clause. It is a 2 year 25 mile clause.

What I want to know is, do I have any legal ground to get out of this clause? Their new contract is totally ridiculous and I will not sign it. I don't believe that they will give me what my franchises are worth, even though I know that they want them (they have been buying up all the franchises under market value).

Now, I own the land in which my businesses sit, but I couldn't allow them to go stagnant for 2 whole years. I love the business and want to continue operating. Does anyone have any advice? My lawyer does not seem to have the answers in which I seek. Thanks.
 


DRTDEVL

Member
Can you let them buy it, then give them rediculous leasing terms on the building/land in return? Value the lease at whatever profit margin you hoped to maintain with the original contract, plus your costs (mortgage/taxes).

That would be a winning solution, but I don't know if the corporation would be willing to keep the stores open then... In that case, you would be back to square one.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top