Is the covenant not to compete in the All County Franchise Agreement, which extends beyond termination, always enforceable under California law?

According to All County's 2025 Franchise Disclosure Document, the enforceability of the covenant not to compete, which extends beyond the termination of the franchise, is not guaranteed under California law. Specifically, Item 17 of the FDD notes that if the Franchise Agreement contains a provision inconsistent with California law, the law will take precedence.

California law has specific rules regarding non-compete agreements, particularly after a franchise relationship ends. These rules often restrict the scope and duration of such covenants to protect franchisees. The FDD explicitly states that the covenant not to compete, which extends beyond the termination of the franchise, may not be enforceable under California law.

This means that if a franchisee were to leave the All County system, the enforceability of the non-compete clause would be subject to legal review under California statutes. A prospective franchisee should seek legal counsel to fully understand the implications and potential limitations of the non-compete agreement within the context of California law.