What is the geographic scope of the non-compete agreement for Advanced Mobile Iv And Amiv?
Advanced_Mobile_Iv_And_Amiv Franchise · 2023 FDDAnswer from 2023 FDD Document
usiness (including business in formation) engaged or to be engaged in the sale or rental at wholesale or retail or on the Internet of intravenous therapies and hydration services and products or similar products or services of any kind or any business that offers products or services that are essentially the same as, or substantially similar to, the products and services that are part of the Licensed Methods. We may waive this covenant only in writing.
You will assure that you and your owners, directors, officers, partners, shareholders, members, employees, consultants, and agents, during the term of this Agreement and for a period of 2 years after expiration or termination of this Agreement do not:
- A. divert or directly or indirectly attempt to divert any of our business or any of our customers to any competing establishment;
- B. employ or seek to employ any person we employ or any other person who is at that time operating or employed by or at any of our franchises or otherwise directly or indirectly induce these persons to leave their employment; nor
- C. do or perform, directly or indirectly, any other act injurious or prejudicial to our goodwill associated with the Marks and Licensed Methods
The running of the periods of time specified by this Section will be tolled and suspended for any period of time during which a court or arbitrator determines you to have been in violation of this Section.
If, for any reason, any provision set forth in this Subsection is determined to exceed any lawful scope or limit as to duration, geographic coverage, or otherwise, it is agreed that the provision will nevertheless be binding to the full scope or limit allowed by law or by a court of law. The duration, geographic coverage and scope allowable by law or court of law will apply to this Agreement.
26 – ADVANCED MOBILE IV FRANCHISE AGREEMENT
The provisions relating to interests in any other business will not apply to your ownership of outstanding securities of any corporation whose securities are publicly held and traded.
Source: Item 23 — RECEIPTS (FDD pages 54–202)
What This Means (2023 FDD)
According to Advanced Mobile Iv And Amiv's 2023 Franchise Disclosure Document, the non-compete agreement restricts franchisees and their associated parties from engaging in activities that could harm the goodwill of Advanced Mobile Iv And Amiv. This restriction applies both during the term of the franchise agreement and for a period of two years after the agreement's expiration or termination.
The non-compete agreement prevents franchisees from diverting business or customers to competing establishments, soliciting Advanced Mobile Iv And Amiv's employees, and performing any actions that could be detrimental to the brand's goodwill. The agreement applies to the franchisee, their owners, directors, officers, partners, shareholders, members, employees, consultants, and agents.
It is important to note that the restrictions on interests in other businesses do not extend to the ownership of publicly traded securities, provided that the franchisee's holdings do not exceed 5% of the corporation's outstanding securities and are held for investment purposes only. If any provision of the non-compete agreement is deemed too broad by a court or arbitrator, the provision will be adjusted to the maximum scope permitted by law. Franchisees must also secure written agreements from their personnel to ensure compliance with these non-compete provisions.