Franchise Lawyer Blog

Enforcement of Franchisee Non-Compete

Einbinder & Dunn, LLP just obtained a preliminary injunction in Federal District Court on behalf of a franchisor, enjoining a former franchisee from operating at its former franchise location as well as at a second non-franchise location.

In Singas v. Ganesha Oak, Case No. 10-cv-8976 (SDNY), defendants opened up a competing pizza restaurant approximately seven miles away from its franchised Singas Famous Restaurant, using the name Queens NY Famous Pizza. Franchisor alleged this was in violation of the non competition clause in the parties’ franchise agreement. Based on this violation, the franchisor terminated the franchise and sought an injunction stopping the former franchisee from operating at both locations. The District Court granted the motion in all respects, terming the former franchisee a “renegade” and holding that defendants were enjoined from operating either restaurant and from doing business as Singas Famous Pizza or Queens NY Famous Pizza.

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