06/03/2026
In 2026, it’s not just franchise fees that are under the microscope, it’s what happens after the franchise relationship ends.
Franchise non‑competes and post‑term restraints are becoming a bigger part of franchise regulation and franchise compliance conversations. Regulators are being encouraged to look more closely at how restrictive these clauses are, how long they last, and how clearly they’re explained inside the franchise agreement.
- Guidance to registration states suggests they should review franchise non‑compete clauses for scope, length, and geography.
- Some states may ask for narrower language or additional risk factors so candidates understand how post‑term restraints can affect their future options.
- There is also more discussion about requiring disclosure of how often and in what ways those clauses have actually been enforced.
If you were evaluating a franchise today, how closely would you read the non‑compete and post‑term restraint sections of the franchise agreement?
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