What is the geographic radius within which an individual is restricted from offering Competitive Business services near an All States M.E.D. location?

According to All States M.E.D.'s 2024 Franchise Disclosure Document, an individual is restricted from offering Competitive Business services within a certain radius of an All States M.E.D. location. Specifically, during the term of the individual's relationship with the franchisee and for two years after, the individual cannot offer Competitive Business services anywhere within a 25-mile radius of any All States M.E.D. location. This restriction applies unless the franchisee and All States M.E.D. provide express written consent.

This non-compete agreement is designed to protect All States M.E.D.'s market and customer base. By preventing individuals associated with a franchise from immediately opening a competing business nearby, All States M.E.D. aims to maintain the integrity of its franchise network and the value of its brand. The agreement extends beyond the immediate term of association, acknowledging the lasting impact an individual could have on the business.

It is important to note that this restriction applies to individuals associated with the franchisee, not just the franchisee themselves. This includes employees or anyone with a business relationship. The agreement also stipulates that violating this covenant could result in legal action, including injunctions, to prevent further breaches. Prospective franchisees should carefully review Schedule 2, which contains the standard form of the Nondisclosure and Non-Competition Agreement, to fully understand these obligations.