What is the geographic radius around an All States M.E.D. location within which an individual is prohibited from offering Competitive Business services after termination?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
h the Marks in any regular, classified or other telephone directory listing and shall authorize transfer of same to or at the direction of Franchisor; and
- (h) comply with all other applicable provisions of this Agreement.
17.2 Post-Termination Covenant Not to Compete
- 17.2.1 Franchisee acknowledges that the restrictive covenants contained in this Section and in Section 17 are fair and reasonable.
- 17.2.2 Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, manager or member of the professional staff of Franchisee, shall, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of termination, either directly or indirectly:
- (a) offer Competitive Business services located or operating (a) at or within a ninety (90) mile radius of the Franchised Business, or (b) within a ninety (90) mile radius of any other All States M.E.D. Business in existence at the time of termination or expiration, or (c) any other business owned or operated by the Franchisor in existence at the time of termination or expiration;
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, a franchisee is restricted from offering competitive business services within a certain radius of All States M.E.D. locations after the termination or expiration of their franchise agreement. Specifically, for a period of two years post-termination, a franchisee cannot offer competitive services within a 90-mile radius of their former All States M.E.D. business or any other All States M.E.D. business existing at the time of termination. This restriction applies regardless of the reason for termination.
Additionally, the non-compete agreement extends to individuals associated with the franchisee, including those holding legal or beneficial interests, as well as officers, directors, executives, managers, and members of the professional staff. These individuals are also subject to the same geographic and temporal restrictions, ensuring a broad scope of protection for All States M.E.D.
Furthermore, a separate non-compete agreement applies to an individual's relationship with the franchisee. This agreement states that for two years after the individual's relationship with the franchisee ends, the individual cannot offer Competitive Business services anywhere within a 25-mile radius of any All States M.E.D. location without written consent from both the franchisee and All States M.E.D.