9.1 During the Term of the Contract, the Franchisee shall not engage in any capacity or manner whatsoever, directly or indirectly, or have a financial interest in any business that would compete with the Business18.

199.2 The obligations assumed by the Franchisee under Article 9.1 shall extend for a period of twelve (12) months after termination of this Contract, regardless of the cause of the termination, unless the Contract has been terminated earlier by the Franchisee in accordance with Article 26.1.

It is very common to include an in-term as well as a post-term covenant against competition to protect against unauthorized use of the franchisor’s intellectual property, either during or for some period following the termination of the franchise agreement. In each jurisdiction, there may be regulations or judicial precedent as to the reasonableness of these provisions, usually with respect to the term, the scope and the geographic territory that may be covered. Also competition issues may be relevant in this respect: thus, for instance, Article 5/3 of EU Regulation 330/2010 on vertical agreements limits the duration of post-term non-competition obligations to one year. Parties should therefore verify the validity and effectiveness of the non-competition obligation under the applicable law.

18
This clause may not be fully effective in the United States if the notion of competitive business is not clearly defined

19
Tick the box if applicable