Is the covenant not to compete in the Deck Medic franchise agreement, which extends beyond termination, always enforceable under California law?

According to Deck Medic's 2024 Franchise Disclosure Document, the enforceability of the covenant not to compete, which extends beyond the termination of the franchise agreement, is not guaranteed under California law. The FDD explicitly states that this provision "may not be enforceable under California law." This means that a California franchisee might not be legally bound by the non-compete clause after their franchise agreement ends.

This lack of enforceability stems from California's general disapproval of restrictive covenants, especially those that limit a person's ability to work in their chosen profession. While some exceptions exist, they are narrowly construed. The statement in the FDD serves as a warning to potential franchisees that they should not assume the post-termination non-compete is valid in California.

Prospective Deck Medic franchisees in California should consult with legal counsel to fully understand the implications of this provision. They should inquire about the specific circumstances under which a non-compete agreement might be enforced or deemed unenforceable in California. This will help them assess the risks and benefits of investing in a Deck Medic franchise and plan their future business activities accordingly.