Legal Question in Business Law in California

I own a small fitness franchise in California (Jazzercise). I am considering ending my franchise. My contract states:

"..upon termination or expiration of this agreement (including voluntary), I agree to refrain from conducting any further dance or fitness programs or classes in the same leased facility on the same day as Jazzercise classes were being conducted by Franchisee or in the territory for 1 year."

I know that in California they cannot prevent me from earning a living, so I can conduct fitness dance classes, however, do I have the right to conduct them in the same facility I am currently teaching Jazzercise classes?

Thanks for any insights you might have.


Asked on 3/24/10, 2:24 pm

2 Answers from Attorneys
Kevin B. Murphy Franchise Foundations, APC

Show your contract and franchise disclosure document to a franchise attorney. While California does not favor non-competes, they are enforceable in certain cases and using proprietary information gained through the franchise relationship is judged under entirely different standards than a non-compete.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 3/29/10, 3:33 pm
Daniel Bakondi The Law Office of Daniel Bakondi

You might just have to switch to a different day, but I cant tell for sure. I wonder if they define "territory." Come to think of it, it is pretty vague and needs a closer looking at.

Best,

Daniel Bakondi, Esq.

[email protected]

415-450-0424

The Law Office of Daniel Bakondi

870 Market Street, Suite 1161

San Francisco CA 94102

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Answered on 3/29/10, 4:03 pm


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