After the All States M.E.D. Franchise Agreement is terminated, for how long am I prohibited from offering competitive business services?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. Non-Competition Covenants During the Term of the Franchise | FA: Section 7.3 | You, your owners, and your officers, directors, executives, managers, professional staff, and employees are prohibited from: attempting to divert any business or customer of the Franchised Business to a competitive business or causing injury or prejudice to the Marks or the System; owning or working for a competitive business. |
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| r. Non-Competition Covenants After the Franchise is Terminated or Expires | FA: Section 17.2 | For 2 years after the termination or expiration of the Franchise Agreement, you may not offer competitive business services within 90 miles of any other franchised outlet, or of any other Franchisor owned business; or solicit or influence any of our customers or business associates to compete with us or terminate their relationship with us. Subject to applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 32–39)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, you are subject to a non-compete covenant. This covenant restricts you from offering competitive business services for a period of two years.
Specifically, for two years after the termination or expiration of the All States M.E.D. Franchise Agreement, you are prohibited from offering competitive business services within a 90-mile radius of any other franchised outlet or any other All States M.E.D. owned business.
In addition to the geographic and temporal restrictions, you are also prohibited from soliciting or influencing any of All States M.E.D.'s customers or business associates to compete with them or terminate their relationship with All States M.E.D. It is important to note that these non-competition covenants are subject to applicable state law, which may impose additional restrictions or limitations.