After termination of the Antioch Pizza Shop franchise agreement, can I operate the Restaurant?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 termination or expiration of the Franchise Agreement, a franchisee is restricted from operating a similar business. Specifically, for two years following termination, the franchisee cannot be involved in a business related to operating a restaurant that sells pizza, burgers, Italian sandwiches, or desserts, similar to Antioch Pizza Shop. This restriction applies to carrying on, engaging in, or advising in the establishment or operation of such a business.
However, there are exceptions to this restriction. The franchisee can operate a similar business if it's done (i) pursuant to agreements with Antioch Pizza Shop, or (ii) if the franchisee is not a party to any other agreement with Antioch Pizza Shop, only at a site that is at least five and one-half (5 1/2) miles from any Antioch Pizza Shop restaurant (including the franchisee's 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 overall system, without depriving the franchisee of a means of livelihood. The agreement acknowledges that the non-competition restrictions may be modified by a court to ensure they are valid and enforceable.
This post-termination covenant is a standard practice in franchising to protect the brand and prevent franchisees from using the franchisor's knowledge to unfairly compete after the agreement ends. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities.