The respected fellow experts
In an a franchise agreement below clause was inserted:
" In case franchisee terminate the agreement prematurely(Initially this agreement is for 5 years) he will be debarred from entering into a new agreement with any person who have similar line of business for a period of 5 years."
Note: franchise agreement is for selling of ready made food items.
My query for the respected fellow experts is ,:
does this clause have any legal standing? Because can any one prevent a person to carry on trade upto a certain period?