When a franchisee establishes, operates, owns, or has financial interest in any business that offers products or services the same or similar to those of the franchise, the franchisee may be said to have a “competing operation.” Many franchise agreements restrict all competing operations during the term of the franchise; they may also restrict any competing activity or business after the term within a specific area and for a limited period (those parts of the franchise agreement are referred to as the “non-compete clauses”).

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