For how long after the expiration or termination of the agreement are the restrictive covenants applicable to an Auntie Annes franchisee?

According to the 2024 Auntie Annes Franchise Disclosure Document, franchisees must comply with the restrictive covenants outlined in Section 15 of the franchise agreement immediately upon the expiration or termination of the agreement.

While the FDD mentions the franchisee's obligation to adhere to restrictive covenants post-termination, it does not specify the duration of these covenants. These covenants typically include restrictions on operating a competing business within a certain geographic area and maintaining the confidentiality of trade secrets and proprietary information.

Prospective Auntie Annes franchisees should carefully review Section 15 of the franchise agreement to understand the specific terms of the restrictive covenants, including the duration, geographic scope, and types of activities that are restricted. It is essential to seek clarification from Auntie Annes regarding the enforceability of these covenants and their potential impact on future business opportunities after the franchise agreement ends. Consulting with a franchise attorney is advisable to fully understand these obligations.