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Non-Compete Agreements › Federal Trade Commission (FTC) › Franchises

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

Skadden, Arps, Slate, Meagher & Flom LLP on

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Kaufman & Canoles

New Principles of Franchising from the IFA Legal Symposium

Kaufman & Canoles on

The International Franchise Association (IFA) recently announced its core practices of responsible franchising and policy recommendations. The principles are grounded in transparency during the franchise sales process through...more

Morrison & Foerster LLP

Potential Exceptions Under FTC’s Non-Compete Ban

Morrison & Foerster LLP on

On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more

Williams Mullen

Are Your Non-Competes Still Valid? A Summary of the New Federal Trade Commission Rule

Williams Mullen on

On April 23, 2024, the Federal Trade Commission (FTC), pursuant to sections 5 and 6(g) of the Federal Trade Commission Act (the “Act”), issued their final “Non-Compete Clause Rule” (Rule). This Rule provides that non-competes...more

Polsinelli

What is the Impact of the FTC’s Final Non-Compete Rule on Franchisors and Franchisees?

Polsinelli on

As explained in Polsinelli’s prior alert of April 24, 2024, the FTC announced its final rule on non-compete covenants (the “Rule”) on April 23, 2024. Critically, the Rule does not prohibit non-compete agreements between...more

Akerman LLP

New FTC Rule Spares Non-Compete Clauses That Bind Franchisees, But Bans Most “Worker” Non-Compete Clauses

Akerman LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted to issue a Non-Compete Clause Rule that would ban most non-compete clauses in agreements between businesses and their “workers.” The final rule will take effect 120...more

McCarter & English, LLP

FTC Votes to Ban Non-Compete Agreements: What Healthcare Organizations Need to Know

McCarter & English, LLP on

The Federal Trade Commission (FTC) approved a sweeping ban on non-compete agreements by employers on April 23, 2024, in a 3-2 vote. The final rule provides that it is “an unfair method of competition” and thus a violation of...more

Lathrop GPM

Federal Trade Commission Excludes Franchise Relationship From New Rule Prohibiting Non-compete Agreements

Lathrop GPM on

A big sigh of relief for franchisors: the FTC’s new rule prohibiting non-compete covenants will not apply to the franchisor-franchisee relationship. As expected by many, yesterday the FTC adopted sweeping new...more

UB Greensfelder LLP

FTC Issues Rule Prohibiting Non-Competes

UB Greensfelder LLP on

On April 23, 2034, the Federal Trade Commission (FTC) issued a final rule intended to ban the use and enforcement of most non-compete clauses signed by workers. The new rule is not in effect yet. It will become...more

Hendershot Cowart P.C.

FTC Votes To Adopt Final Rule To Ban Non-Compete Agreements

Hendershot Cowart P.C. on

On April 23, 2024, the Federal Trade Commission (FTC) voted to publish the “Non-Compete Clause Rule” to ban employers from entering into non-compete clauses with workers on or after the effective date. The rule will be...more

Fox Rothschild LLP

FTC Bans Virtually All Employment-Based Noncompete Agreements, Business Groups Seeking Injunction

Fox Rothschild LLP on

In a rare public meeting, the Federal Trade Commission (FTC) voted 3-2 on April 23, 2024, to approve a final regulatory rule (Final Rule) which bans virtually all preexisting and future noncompete agreements with very few...more

Morrison & Foerster LLP

FTC Issues Final Rule Banning Non-Competes

Morrison & Foerster LLP on

On April 23, 2024, the Federal Trade Commission (the “Commission”) voted to issue its final rule (the “Final Rule”) barring non-competes for most workers in the United States, with exceptions for non-competes entered into in...more

Foley & Lardner LLP

“If It’s Not Broken, Don’t Fix Break It”— The FTC Targets the Franchise Business Model

Foley & Lardner LLP on

Historically, the Federal Trade Commission (FTC) has shied away from regulating the substance of franchisor-franchisee relationships. A recent FTC press release, however, suggests this may soon change. If so, it is by no...more

Troutman Pepper

FTC Seeks Public Comment on Potential Franchise Rule

Troutman Pepper on

The Federal Trade Commission (FTC) made another move to protect two of the Biden administration’s priority constituencies: small business and workers. This time, it targeted perceived unreasonable restraints in the franchise...more

Mintz - Antitrust Viewpoints

Federal Trade Commission Continues Policy Initiatives by Seeking Public Comment on Franchisor-Franchisee Relationships

Mintz - Antitrust Viewpoints on

The Federal Trade Commission on Friday announced a Request for Information regarding “franchise agreements and franchisor business practices, including how franchisors may exert control over franchisees and their workers.”...more

AEON Law

Patent Poetry: Is this the end of the employee non-compete?

AEON Law on

On January 5, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) that seeks to severely limit the scope of employee non-competes. This would bring federal law into alignment with the laws of...more

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

Bradley Arant Boult Cummings LLP on

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...more

Cozen O'Connor

FTC Requires Divestiture In $21 Billion Acquisition Of Retail Fuel Chain

Cozen O'Connor on

The Federal Trade Commission (“FTC”) reached a settlement with 7-Eleven, Inc. and Marathon Petroleum Corporation (“Marathon”) to resolve allegations that 7-Eleven’s acquisition of Marathon’s retail fuel chain subsidiary,...more

Fox Rothschild LLP

Reappraisal Of Anti-Poaching And Non-Competes In Franchising (Part 1 Of 2)

Fox Rothschild LLP on

Let’s review the status of activity restrictions in franchise agreements. Do they serve the purpose intended? Are they enforceable? Are they worth it? The Pennsylvania Supreme Court’s decision in Pittsburgh Logistics Systems...more

Faegre Drinker Biddle & Reath LLP

Top 10 Noncompete Developments of 2019

Faegre Drinker Biddle & Reath LLP on

If there was any question about whether there is a growing national trend to limit the enforceability of noncompetition agreements, 2019 settled the matter. Seven states enacted new statutes designed to limit the...more

Seyfarth Shaw LLP

State Attorneys General Urge FTC to Consider Labor Issues in Antitrust Enforcement

Seyfarth Shaw LLP on

A group of 18 state attorneys general (the “AGs”) recently filed comments with the Federal Trade Commission (“FTC”) in advance of a series of hearings centered on changes to antitrust and consumer protection enforcement in...more

Maynard Nexsen

A Franchise Chain's Non-compete Agreement Comes Under Congressional Scrutiny

Maynard Nexsen on

Tremors were felt throughout the franchise community when a recent article in The Huffington Post reported that the Jimmy Johns sandwich franchise is under Congressional scrutiny for its franchisees’ practice of requiring...more

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