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Restraint Of Trade Clauses In Franchise Agreements

  • October 05, 2021

The General Court found that Spanline had not fulfilled its obligation to take all necessary and appropriate measures to enable RPR to benefit from the exclusivity granted by the franchise agreement. The limitation period has been defined several times through a “cascading clause”, ranging from one year to ten years. In New South Wales, it is not entirely fair to say that a restraint against public order is, not, appropriate. Following the Restraint of Trade Act 1976, a restriction is valid to the extent that it does not conflict with public policy. The date of assessment of the adequacy of the restriction is not the date on which the restriction was imposed and not the date on which the restriction is to be applied or challenged. It should never be taken for granted that a franchisee, simply because a business is franchised, has an easy way to protect its activities through reluctance.