Is an All States M.E.D. franchisee prohibited from attempting to induce customers of the Franchisor to compete against the Franchisor?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, franchisees face restrictions regarding soliciting customers to compete against the franchisor. Specifically, for a period of two years after the termination or expiration of the Franchise Agreement, the franchisee cannot solicit or attempt to influence any customer or other business associate of All States M.E.D. to terminate or modify their business relationship with All States M.E.D. or to compete against them. This restriction applies regardless of the reason for termination.

This post-termination covenant not to compete is designed to protect All States M.E.D.'s business relationships and prevent franchisees from leveraging their knowledge and connections gained during the franchise term to unfairly compete with the franchisor after the agreement ends. This type of clause is common in franchise agreements to safeguard the franchisor's customer base and goodwill.

All States M.E.D. also has the right to require certain individuals to execute standard form nondisclosure or non-competition agreements. These agreements are in a form the same as or similar to the Nondisclosure and Non-Competition Agreement attached as Schedule 2 in the Franchise Agreement.