noncompete clause

English - English

Definition of noncompete clause in English English dictionary

A provision within a business agreement or employment contract which stipulates that the contracting party must abstain from competitive practices not in the interests of an identified firm, such as starting a competing business or accepting a job with a competitor, and often extending for a period of time after the termination of the original employment or other business relationship

When Pizza Hut's owner, Tricon (now called Yum Brands), tried to revise his franchise agreement in 1999 to put in a noncompete clause stipulating that Heinecke needed permission to operate other food businesses, Heinecke, who by then already ran a number of fast-food chains, sued for breach of contract.

Related Terms

noncompete clauses

plural form of noncompete clause

Turkish pronunciation

nänkımpit klôz

Pronunciation

/nänkəmˈpēt ˈklôz/ /nɑːnkəmˈpiːt ˈklɔːz/