Per Court in Ahn v Stewart Title Guaranty, executive's injury didn't arise from alleged anticompetitive aspects of agreement but rather from conduct that emphasized competitor competitive differences. Thus there was antitrust injury with result that plaintiff lacked standing
Federal Trade Commission FTC issued Notice of Proposed Rulemaking to broadly ban use of non-compete covenants throughout country. Proposed rule would supersede all contrary state laws, extend to de facto non-compete clauses.
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Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors.
Post-Termination Injunction: Noncompete Covenants -
California Federal Court Enforces Noncompete Against Former Franchisee -
A federal court in California granted a franchisor’s motion for a preliminary injunction against a former franchisee alleged to have misappropriated trade secrets and breached a noncompetition provision related to the continued operation of a formerly franchised restaurant. Bambu Franchising, LLC v. Nguyen, 2021 WL 1839664 (N.D. Cal. May 7, 2021). Bambu licenses the operation of restaurants that sell Vietnamese beverages utilizing confidential recipes. After the sale of Bambu to the current owner, the original owner, Jenny Nguyen and her company Bambu Delight Hostetter, Inc., continued to operate a Bambu location under the terms of a franchise agreement. Nguyen ulti