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Georgia Law Regarding Non-competes Is Revised

By Les Wharton
December 21, 2010

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 uses trade secrets and confidential information, either during the term of the franchise agreement or after the termination of the franchise agreement, to its unfair advantage in competing with the franchisor and its other franchisees. In some industries, the problem includes the diversion of clients or employees.

Restrictive covenants may also be found in other agreements, such as employment, sale-of-business, distribution, dealership, lease, license, broker, and representative/agent agreements.

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