General This Practice Note sets out the restrictions that a franchisor typically imposes on a franchisee in order to protect the franchisor’s business, including use of the franchisor’s confidential information, obligations not to compete with the franchisor’s business (restrictive covenants), no poaching provisions, severability and enforceability of restraints, and practical guidance on drafting restrictive covenants. It does not specifically consider competition law issues—see the Practice Notes referred to below for further information in that respect. The grant of franchises will typically involve a franchisor disclosing confidential information to: • actual and prospective franchisees (including unit franchisees, master franchisees and developers), and • employees and agents of the franchisees Such confidential information will include the method underlying the franchised concept and related know-how, etc. Misuse by a recipient, particularly in competition with the franchisor, could be very damaging to the franchisor’s business. The franchisor must, therefore, try to prevent recipients of such information from disclosing it for unauthorised purposes, including using it to compete with the franchisor’s business. Such restrictions must apply to franchisees and their