Does the definition of 'Competitive Business' for Bang Cookies include bakeries?

According to Bang Cookies' 2024 Franchise Disclosure Document, the definition of a 'Competitive Business' does include bakeries. Specifically, the FDD states that a 'Competitive Business' is any shop that is the same as or similar to a Bang Cookies shop, including any business, bakery, or shop that offers, sells, or provides cookies, brownies, and/or cakes. This definition extends to traditional outlets, mobile kiosks, food trucks, and non-traditional outlets.

For a prospective Bang Cookies franchisee, this definition is important because it outlines the types of businesses that could be considered competitive during the term of the franchise agreement. This definition is relevant to the restrictive covenants related to unfair competition, which prevent a franchisee from engaging in competitive activities during the term of the agreement and for a certain period after termination.

The inclusion of bakeries in the definition of 'Competitive Business' means that a franchisee cannot own, operate, or be involved with a bakery that sells similar products (cookies, brownies, cakes) during the term of their franchise agreement. This restriction aims to protect Bang Cookies' market share and prevent franchisees from diverting business to competing establishments. Franchisees should carefully consider this restriction and ensure they are not in violation of the non-compete clause.

This type of non-compete clause is common in franchise agreements to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to compete against the system. Prospective franchisees should carefully review the definition of 'Competitive Business' and the terms of the non-compete agreement to understand the restrictions and obligations they will be subject to during and after the franchise term.