Does a radius restriction in my franchise agreement stop me from opening a similar business nearby after I sell?

Generally, yes, if your franchise agreement includes one — a radius restriction is a form of non-compete specific to franchise agreements, typically preventing a departing franchisee from operating a competing business within a defined distance of their former location for a set period after leaving the system, and these clauses commonly survive the sale of the franchise itself since they're aimed at protecting the franchisor's brand and territory, not tied to your continued ownership.

Since October 25, 2021, general employee non-compete agreements have been prohibited under the Employment Standards Act, but that ban is aimed at the employer-employee relationship and doesn't apply the same way to a franchise agreement's radius restriction between franchisor and franchisee, which is a different kind of commercial relationship entirely — so don't assume the ESA changes protect you here.

Whether your specific restriction is enforceable in scope and duration depends on ordinary common-law reasonableness limits and the clause's actual wording. If your future plans involve a similar business nearby, review this clause carefully before you sell. A Treadstone business lawyer can assess how much room it actually leaves you.