What is the duration of the in-term non-compete agreement for Antioch Pizza Shop franchisees?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
6.4 In-Term Non-Competition Agreement. You agree that we would be unable to protect the Confidential Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information between you and us if you or your Owners were permitted to hold interests in any competitive businesses, as described below. You also acknowledge that we have entered into this Agreement with you in part in consideration of, and in reliance on, your agreement to deal exclusively with us. Therefore, during the term of this Agreement, neither you, nor any Owner, may, either directly or indirectly, for yourself or through, on behalf of, or in conjunction with, any person or legal entity, own, maintain, operate, engage in, consult with or have any interest in (as disclosed or beneficial owner) any business which offers products or services which are the same as, or similar to, those offered by Antioch Pizza Shop Restaurant (other than through a franchise agreement with Franchisor), or any entity which is granting franchises or licenses for any business which offers products or services which are the same as, or similar to, those offered by Antioch Pizza Shop Restaurants. (The ownership of five percent (5%) or less of a publicly traded Franchisor will not be deemed to be prohibited by this paragraph.) Further, during the term of this Agreement, you will not divert customers or business from any Antioch Pizza Shop Restaurants to any other business.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 FDD, during the term of the Franchise Agreement, Antioch Pizza Shop franchisees and their owners are restricted from engaging in any competitive businesses that offer similar products or services to Antioch Pizza Shop restaurants. This restriction applies to owning, maintaining, operating, consulting with, or having any interest in such businesses, whether directly or indirectly. The only exception is owning five percent or less of a publicly traded franchisor.
This in-term non-compete agreement ensures that franchisees remain fully committed to the Antioch Pizza Shop system and do not divert customers or business to other ventures. It protects the franchisor's confidential information and encourages a free exchange of ideas within the Antioch Pizza Shop network. This is a standard practice in franchising to maintain brand consistency and prevent franchisees from using the franchisor's knowledge and resources to benefit competing businesses during the franchise term.
For a prospective Antioch Pizza Shop franchisee, this means that while operating the franchise, they must dedicate their full business efforts to the Antioch Pizza Shop. They cannot simultaneously run or invest in a competing pizza business or franchise. This commitment is a condition of the Franchise Agreement, and failure to comply could result in a breach of contract and potential termination of the franchise.