Chapter 4, Covenants against Competition in Franchise Agreements: Alabama

Covenants against Competition in Franchise Agreements, Fourth Edition

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The chapter provides Alabama-specific analysis — in the context of franchises — of covenants against competition. It is organized to answer important questions, including:

  1. What legitimate interests of a franchisor are protectible by restrictive covenants?
  2. What time and geographic limitations have courts recognized as reasonable?
  3. Will courts enforce such covenants against non-signatories?

The chapter also discusses whether the 1984 decision in Gafnea v. Pasquale Food Co. remains relevant after the enactment of current Ala. Code § 8-1-109. For both franchisors and franchisees, the chapter is an ideal starting point for analyzing covenants against competition in Alabama.

The full book, "Covenants against Competition in Franchise Agreements, Fourth Edition," is available for purchase from the American Bar Association.