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  • Bayard, P.A.
June 20, 2023

Covenants Against Competition in Franchise Agreements | Fourth Edition (2023) | American Bar Association | State Law Analysis, Delaware Chapter

This book is survey of the statutes and case law of all 50 states, Mexico and Canada relating to non-competition provisions, with specific focus on issues relevant to franchising.   As noted in the introduction, the issues presented in the franchising context are somewhat unique because they must balance the interests of the franchisor and the franchisee that are party to the agreement, but also considerations relevant to other franchisees in the system.   The chapter for each jurisdiction addresses a uniform set of questions exploring whether the courts in that jurisdiction have specifically examined noncompetition agreements in the franchise context, the interests that courts have recognized as legitimate and the geographic and temporal scope of restrictive covenants that have been enforced in that jurisdiction, among other issues.  Delaware courts have not directly addressed the validity of a non-competition covenant entered into as part of a franchise relationship.  Accordingly, the Delaware chapter draws primarily from case law in the employment context or arising in connection with the sale of a business. 

The chapter on Delaware was written by Bayard director, Marla H. Norton. Marla concentrates her practice on business entity law (corporations, limited liability companies, partnerships, and statutory trusts), business law and third-party legal opinions.  She has over thirty-five (35) years of experience in corporate and commercial transactions, including securitization transactions, corporate and alternative entity formation and governance, mergers and acquisitions, contract negotiation and drafting, and secured lending.  She is an active member of the American Bar Association Business Law Section and several of its committees.

The book, the only of its kind, is a compilation of the most current franchising statutory and decisional law in all 50 states.  This new Fourth Edition updates the Third Edition published in 2012.  

A physical or digital copy of the book is available for purchase on the ABA website.