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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Lawyer
Category: Legal
Satisfied Customers: 2156
Experience:  Practicing Attorney with 10 years experience
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I just started a franchised business back in April. It's not

Customer Question

I just started a franchised business back in April. It's not going so well, and I am considering terminating my agreement. My question is about a non-compete. The business model of the franchise is to get insurance carriers to pay for exterior renovations, such as; roofing, siding, gutters, etc. There is typically a compelling weather event, like hail or wind, that predicates these insurance claims. My marketplace is not supporting much of this exterior insurance work, but we are instead seeing a need for drywall, plumbing, painting, HVAC, handyman work. The Franchisor has advised me on several occasions not to take this type of work, and only accept the exterior insurance work. I will be out of business is that is my only source of income.
There is virtually no chance of another franchisee buying my franchise, nor will they replace me. (Marketplace is too rural). In addition, if I continue to sell interior and non-insurance roofing jobs, am I truly competing with them?
My theory is that I will not be competing directly with them in my marketplace, and I will be selling a different service. Should I be overly concerned about the non-compete?
Submitted: 11 months ago.
Category: Legal
Expert:  Asad Rahman replied 11 months ago.

i think if you are offering services that are distinctly different then you should be fine. I would have to look at your noncompete because they usually prevent you from contacting the customers.

Expert:  Asad Rahman replied 11 months ago.

If you have any additional questions just let me know otherwise a positive rating would be greatly appreciated.