Zabaneh Franchises bought an H&R Block tax preparation franchise. The purchase included “all interest in the employment and noncompetition agreements with H&R Block’s employees.”
Terri Walker had been employed by H&R, but claimed she did not have an employment agreement with Zabaneh. Zabaneh claimed the Terri violated the employment agreement she signed with H&R, and that Zabaneh took over, because within a few months after leaving H&R, Terri (1) started her own tax preparation business; (2) hired H&R employees; (3) solicited H&R customers. So Zabaneh asked the trial court for a preliminary injunction to prevent Terri from doing all those things.
The trial court denied Zabaneh’s request for an injunction against Terri. The trial court refused to enforce the employment contract because it was a “contract of adhesion,” meaning there had not been negotiation of the terms of the contract and the only way Terri could get employment with H&R was to accept the contract as presented. So Zabaneh appealed.