Can I continue business after franchise agreement without renewal?
I had a franchise agreement with a company for my business, which ends in March. I decided not to renew the agreement and continue the business on my own, but they are telling me that as per the agreement, I cannot do the same business for the next three years.
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Advocate By LEAD INDIA
Answered: 24 Feb 2025
If the franchise agreement explicitly prohibits working in the same business area for three years, the restriction may be enforceable, depending on the terms. Consult a lawyer to review the agreement, as such non-compete clauses can sometimes be contested if unreasonable or overly restrictive under Indian law. For further legal assistance contact us on our helpline number.
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