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VIC Setting Up Business Away from Franchise Location - Breach of Agreement?

Discussion in 'Commercial Law Forum' started by Mazzerra, 23 May 2016.

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  1. Mazzerra

    Mazzerra Member

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    Hi,

    I am ending a franchise arrangement.

    In my franchise agreement, there is a restraint condition stating that I am prohibited from engaging in any business which are in competition with the franchise business for a period of 3 years of termination and within 3 kilometers of any of the franchise business.

    My question is: if I am to set up a competing business immediately upon termination of my franchise agreement that is not within the 3 kilometers distance of any of the franchise business then I will not be in breach of the restraint clause - is this correct?

    Thanks.
     
  2. Rod

    Rod Well-Known Member

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    Yes. However I'd be surprised if there wasn't a 'no poaching' clause somewhere in the agreement as well.
     

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