What is the duration of the post-term non-compete agreement for Antioch Pizza Shop franchisees?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
blicly traded company will not be deemed to be prohibited by this Paragraph.) Further, during the term of this Agreement, Franchisee shall not divert any customers or prospective customers from its Restaurant to any other business.
- (b) Post-Termination. In addition, for two (2) years after the termination or expiration of this Agreement, Franchisee shall not carry on, be engaged in or advise in the establishment or operation of any business involving or related to the operation of a restaurant selling pizza, burgers, Italian sandwiches, dessert, or similar businesses described in section (a) above except (i) pursuant to Agreements with Franchisor, or (ii) if Franchisee is not then a party to any other Agreement with Franchisor, only at a site that is at least five and one-half (5 1/2) miles from any Antioch Pizza Shop™ (or successor name) restaurant (including Franchisee's former Restaurant) that is operating or being developed. Franchisee agrees and acknowledges that this restriction represents only a limited one on Franchisee's ability to conduct a business and that the purpose
of this covenant is not to deprive Franchisee of a means of livelihood, and will not do so, but is rather to protect the goodwill and interest of Franchisor, other franchisees and the System.
- (c) Covenants contained in this Section 13 shall be construed as severable and independent, and shall be interpreted and applied consistently with the requirements of reasonableness and equity.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, after the franchise agreement terminates or expires, the franchisee is subject to a non-compete agreement for two years. During this period, the franchisee cannot engage in or advise in the establishment or operation of any business involving or related to a restaurant selling pizza, burgers, Italian sandwiches, desserts, or similar businesses.
However, there are exceptions to this restriction. The franchisee can operate a similar business if it's done under an agreement with Antioch Pizza Shop. Alternatively, if the franchisee is not a party to any other agreement with Antioch Pizza Shop, they can operate a similar business at a location that is at least five and one-half miles from any Antioch Pizza Shop restaurant, including their former restaurant, that is operating or being developed.
The FDD states that this restriction is designed to protect the goodwill and interests of Antioch Pizza Shop, its other franchisees, and the system as a whole, without depriving the franchisee of a means of livelihood. The agreement acknowledges that the restriction represents a limited constraint on the franchisee's ability to conduct a business.
It's also important to note that the non-competition restrictions may be modified by a court to ensure they are valid and enforceable. This acknowledges that public policies vary across jurisdictions and may change over time, allowing for adjustments to the agreement to maintain its enforceability.