Non-compete clause
A contractual provision prohibiting a departing franchisee from operating a competing business during or after the franchise contract. In France, it must be limited in duration, geography, and scope to be legally enforceable.
In practice
In French franchise law, a post-contractual non-compete is generally accepted for a maximum of one year on the franchisee’s former territory, with no obligation to pay compensation — unlike employment law. During the contract, the restriction can be broader, covering any competing network. When a franchisor terminates a contract for serious fault of its own, courts have sometimes voided these clauses entirely.