Only if they're reasonable. Most franchise agreements stop you running a competing business for a period after you leave. A court will enforce one only if it protects a legitimate interest, such as the brand's know-how or customers, and goes no further than needed.
What courts look at
- How long the restriction lasts.
- The area it covers.
- What it stops you doing, and whether that's wider than needed.
- The circumstances, such as how long you traded and how much goodwill you built.
A recent example
In Dwyer (UK Franchising) Ltd v Fredbar Ltd (2022), the Court of Appeal refused to enforce a 12-month non-compete against a franchisee whose franchise ended early. The court said there's no general rule that a 12-month restriction in a franchise agreement is enforceable. Each case depends on its facts.
What this means for you
- Read the restrictions before you sign, and ask for changes if they're too wide.
- Don't assume a clause won't be enforced. Get advice before you rely on that.
- Lenders and buyers may ask what you can do if the franchise ends. See What happens to my loan if my franchise ends early?.
This is general information, not legal advice. Speak to a franchise-specialist solicitor.
Last reviewed: 8 October 2026