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Not all Restraints of Trade are Enforceable

Posted by Elizabeth Gore-Jones on 18 June 2019
Not all restraints of trade are enforceable. Some matters that may impact the enforceability of a restraint include: 1. in the case of a franchise, did the franchisee operate from the same premises or do the same type of work before entering into the franchise? 2. what is the restraint protecting? 3. will the restraint stop the "restrainee" from earning a living? 4. is it against public policy? 5. can the protected party be protected in some other way? ...
Posted in: Business Franchisee Franchisor  

You cannot set the sale price

Posted by Elizabeth Gore-Jones on 14 June 2019
Did you know you can't set the retail price or a minimum price that a franchisee, distributor or a retailer must charge? Many people are surprised about this. Australia's competition laws want competition in the market place.  If a fanchisor, manufacturer, wholesaler etc sets a retail price or says you can't charge below a minimum price then that will not encourage competition. You can set a maximum price because that will encourage competition and get a better...
Posted in: Business Franchisee Franchisor  

Do you know what a cascading clause is?

Posted by Elizabeth Gore-Jones on 10 June 2019
Many people are confused about how cascading clauses work. A cascading clause is often used for restraints of trade.  They look something like this: Restraint period: (a) 3 years (b) 2 years (c) 12 months And, Restraint area: (1) Australia (2) Queensland (3) Brisbane. They work like this: many courts do not have the power to rewrite clauses but they do have the power to strike clauses out courts will only enforce a restraint of tra...
Posted in: Leases Business Franchisee Franchisor  
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Not all Restraints of Trade are Enforceable

Jun 18 2019
Not all restraints of trade are enforceable. Some matters that may impact the enforceability of a restraint include: 1. in the case of a franchise, did the franchisee operate from the same premises or do the same type of work before ent...

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