For how long after the Conclusion of the Annex Brands franchise is the franchisee restricted from owning or being involved with a competing business within 5 miles of their former center?

3. Covenantor's Post-Term Non-Competition and Non-Solicitation Covenants.

• a. For purposes of this Section 3, the word "Conclusion" means the expiration, termination, non-renewal or transfer of the Franchise under the Franchise Agreement, regardless of whether such expiration, termination, non-renewal or transfer occurs prior to, or at the end of, the Franchise's term.
• b. Upon the Conclusion of the Franchise under the Franchise Agreement, and in accordance with the time period and geographic restrictions set forth below, Covenantor will not directly or indirectly (such as through corporations or other entities controlled by Covenantor or by, through or in conjunction with, any other individual person or person, including but not limited to Covenantor's spouse if any, relatives, employees or business affiliates):
  • i. divert or attempt to divert any business or customer of any Retail Center or Commercial Logistics Center to any competitor, or do anything injurious or prejudicial to the goodwill associated with ABI's Marks or System for a two

• (2) year period following the Conclusion of the Franchise under the Franchise Agreement and without geographic restriction;

• ii. own, maintain, engage in, be associated with, be employed by, advise, assist, invest in, be landlord to, franchise, make loans to, or have any interest in any business which is the same, competes, or is substantially similar to, Franchisee's Center or any Retail Center or Commercial Logistics Center, which is located within 5 miles of Franchisee's Center or any Retail Center or Commercial Logistics Center in operation or under construction as of the Conclusion of the Franchise under the Franchise Agreement (with such restriction limited to a two (2) year period following the Conclusion of the Franchise under the Franchise Agreement); and/or

• iii. enter into any business relationship with any terminated (former) Corporate Account(s) of any Retail Center or Commercial Logistics Center for a one (1) year period following ABI's termination of any of its Corporate Accounts.

• c.

As an alternative to Subsection 3(b)(iii) above, and only if the applicable former Center is located in a state whose public policy disfavors the enforceability of postterm non-competition covenants against franchisees, then on the Conclusion of the Franchise under the Franchise Agreement, in accordance with the time period and geographic restrictions set forth below, Covenantor will not directly or indirectly (such as through corporations or other entities controlled by Covenantor or by, through or in conjunction with, any other individual person or persons including but not limited to Covenantor's spouse if any, relatives, employees or business affiliates), own, maintain, engage in, be associated with, be employed by, advise, assist, invest in, be landlord to, franchise, make loans to, or have any interest in any business which is the same, competes with, or is substantially similar to Franchisee's Center, and:

• i. which sells packaging and shipping services (which constitute only a limited portion of all products and services sold by Franchisee's Center);

• ii. which is located at the premises of Franchisee's Center; and

• iii. with such partial restriction limited to a six (6) month period following the Conclusion of the Franchise under the Franchise Agreement.

• d.

ABI may (in its sole discretion) at any time unilaterally reduce the scope of any part of the post-term non-competition covenant to something less than the restriction provided in Section 3 of this Agreement, and Covenantor agrees and promises to comply with any such reduced restriction on receipt of written notice from ABI.

Source: Item 22 — Contracts (FDD pages 109–110)