Non-Compete with a closed franchise
I'm a mobile animal groomer. I signed a employment contract that included a non-compete when I was hired by a franchisee. The franchiser company closed his franchisee and as such I have been laid off. No one is buying 'my' boss's company, he's just closing it and suing the parent franchiser. Is the employment contract, specifically the non-compete clause, enforceable and if so, who would enforce it?
I would believe if there is no operating business, there would be no grounds for this, but I want to know if I should keep a lawyer 'in my back pocket' is case there are any problems.
Thanks for any help!
1 Answer from Attorneys
Re: Non-Compete with a closed franchise
You're initial reaction is likely the correct scenario. A non compete is equitably enforcable to prevent competition, not to simply keep you out of work. The only question is whether or not the Franchisor is also protected - is there a clause or language that restricts competition with any franchise, not just your employer.