{"id":53,"date":"2016-03-16T15:09:18","date_gmt":"2016-03-16T19:09:18","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/franchiselaw\/?p=53"},"modified":"2016-10-26T10:10:41","modified_gmt":"2016-10-26T14:10:41","slug":"2-years-and-10-miles-federal-court-reviews-franchise-agreements-non-compete-clause","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/franchiselaw\/2016\/03\/16\/2-years-and-10-miles-federal-court-reviews-franchise-agreements-non-compete-clause\/","title":{"rendered":"2 Years and 10 Miles: Federal Court Reviews Franchise Agreement\u2019s Non-compete Clause"},"content":{"rendered":"<p><em><strong>By: Sheila Raftery Wiggins<\/strong><\/em><\/p>\n<p>Two years and 10-mile radius = enforceable. The Federal Court in Philadelphia ruled against AAMCO, which sought to enforce the non-compete clause in its franchise agreement, prohibiting a franchisee from engaging in transmission repair within two years from terminating the relationship and within a 10-mile radius. Here, the franchisee sold his franchise and opened a repair business 90 miles away from their former AAMCO location\u2014but 1.4 miles away from another AAMCO location. The court ruled: No violation by the franchisee. LESSON: The non-compete clause should be tailored to address: (1) direct competition and (2) abuse of the franchise system\/improper use of trademarks or goodwill.<\/p>\n<p><em><a href=\"http:\/\/www.duanemorris.com\/attorneys\/sheilarafterywiggins.html\">Sheila Raftery Wiggins<\/a>, of the <a href=\"http:\/\/www.duanemorris.com\/offices\/newark.html\">Newark office<\/a>, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By: Sheila Raftery Wiggins Two years and 10-mile radius = enforceable. The Federal Court in Philadelphia ruled against AAMCO, which sought to enforce the non-compete clause in its franchise agreement, prohibiting a franchisee from engaging in transmission repair within two years from terminating the relationship and within a 10-mile radius. Here, the franchisee sold his &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/franchiselaw\/2016\/03\/16\/2-years-and-10-miles-federal-court-reviews-franchise-agreements-non-compete-clause\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;2 Years and 10 Miles: Federal Court Reviews Franchise Agreement\u2019s Non-compete Clause&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[131,130,120,124,122,123,118,121,125,127,41,129,128,119,8,126],"ppma_author":[191],"class_list":["post-53","post","type-post","status-publish","format-standard","hentry","category-general","tag-10-miles","tag-2-years","tag-aamco","tag-abuse-of-the-franchise-system","tag-clause","tag-direct-competition","tag-federal-court","tag-franchise-agreement","tag-franchise-sstem","tag-goodwill","tag-lesson","tag-non-compete","tag-non-compete-clause","tag-philadelphia","tag-sheila-raftery-wiggins","tag-trademarks"],"authors":[{"term_id":191,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/posts\/53","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/posts\/53\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/categories?post=53"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/tags?post=53"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/franchiselaw\/wp-json\/wp\/v2\/ppma_author?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}