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Restrictive Covenants in Franchise Agreements

Employment and Business Law Solicitors

In the case of PSG Franchising Ltd v Lydia Darby Ltd [2012] the High Court enforced an ambiguously drafted restrictive covenant against an ex-franchisee.  The court preferred an interpretation that rendered the clause enforceable over one which would render it unenforceable.  The court ruled that it would be wrong to find a clause void because of the possibility that it might operate unreasonably.

This is an example of the court applying established employment law principles on restrictive covenants to a business-to-business situation.

Business Law Solicitors Eastbourne, Hailsham, Polegate, East Sussex

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Jacqueline Penfold
Jacqueline Penfold
Tina Ripley
Tina Ripley