Which articles of the Bang Cookies Franchise Agreement address non-competition covenants?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
| t. Transfer | FA: 14 DA: 6 | 17 |
|---|---|---|
| u. Renewal | FA: 15 DA: 3 | 17 |
| v. Post-termination obligations | FA: 6, 10, 11, 17 and 18 DA: Not applicable | 17 |
| w. Non-competition covenants | FA: 6, 17 and 18 DA: Not applicable | 17 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–36)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the articles in the Franchise Agreement that address non-competition covenants are FA: 6, 17 and 18. This information is found in Item 11, which generally discusses the franchisor's assistance, advertising, computer systems, and training provided to franchisees.
Specifically, this reference appears in a table summarizing various aspects of the franchise agreement and multi-unit development agreement. The table lists 'Non-competition covenants' and indicates that these are covered in the Franchise Agreement (FA) under Articles 6, 17, and 18. The corresponding entry for the Development Agreement (DA) states 'Not applicable,' meaning that non-competition covenants are exclusively addressed within the Franchise Agreement itself, not the Development Agreement.
Prospective franchisees should carefully review Articles 6, 17, and 18 of the Bang Cookies Franchise Agreement to fully understand the terms and conditions of the non-competition covenants. This includes understanding the scope of activities that are restricted, the geographic area covered by the restrictions, and the duration of the restrictions, both during the term of the franchise agreement and after its termination or expiration. Understanding these clauses is crucial for assessing the limitations on one's business activities, both during and after the franchise term.