Most franchisors have non-compete, non-solicitation, and non-disclosure provisions in their franchise agreements. These restrictive covenants protect both the franchisor and the other franchisees in the system against the franchisee who
Georgia Law Regarding Non-competes Is Revised
During the election held on Nov. 2, 2010, Georgia's electorate voted to amend the state constitution of Georgia in a way that made effective on the next day legislation relating to non-competition covenants, namely HB 173 (the "Act"). The Act had passed in the 2009 legislative session and had been signed by the governor that year. Subsequent discussion about a wording issue in the amendment and the Act would suggest that the effective date may actually be Jan. 1, 2011, or maybe later if it is determined that a legislative fix of the effective date wording is required.
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