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

[Mazzerra]

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.

 

[Rod]

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