Legal Question in Business Law in Texas

Starting a new business from knowledge gained as a franchisee
I am currently a franchisee of a QSR. Am I able to open a similar business which serves similar products, plus other items? Can I take what I've learned and apply portions of it to a new business? For example, if I am a Subway franchisee, can I open up my own sub shop, applying much of what I learned as a franchisee? Can I create my own franchise from knowledge gained as a franchisee?

I think i should be able to because I see video game programmers, for example, who develop a game for a large company, and then quit their job to start their own business making video games.

It's a thin line, determining what I can ''copy'' from the franchise I'm currently involved with. I need help to make sure I don't cross that line.

Asked on 3/12/09, 11:54 pm

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Re: Starting a new business from knowledge gained as a franchisee

I would have to review your franchise agreement. Most franchise agreements include a "non-compete" clause in them. This is specifically to prevent franchisees from doing exactly what you are proposing--using knowledge gleaned from the confidential operations manual for your own personal gain. You should hire a lawyer to review the franchise agreement, and your business plan to see if there is overlap.

Answered on 3/15/09, 5:02 pm

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