On March 26, 2015, U.S. Judge Jose L. Linares of the District of New Jersey denied a franchisors’ motion for preliminary injunction to enforce a non-compete and non-soliciation clauses. Under the franchise agreement, Executive Home said the defendants agreed not to compete for a period of two years within a 10-mile radius of Executive Home’s location or any Executive Care business, not to solicit employees and to return proprietary information. The Court ruled that Executive Home failed to show that it will suffer irreparable harm as a result of the defendants’ alleged breach of the franchise agreement.
A copy of the Court’s opinion can be found here. Rob Boulter has successfully set aside non-competition and non-solicitation provisions for franchisees. If you are a franchisee concerned about a non-competition or non-solicitation provision, please contact Rob at [email protected].