Is a Bang Cookies franchisee prohibited from participating in a competitive business within a 10-mile radius of any other Bang Cookies Shop?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
You and, if you are a Corporate Entity, each of your members, shareholders and/or partners (collectively, "Owners"), must personally guarantee all of your obligations to us under the Franchise Agreement. Each Owner and the spouse of each Owner must personally guarantee your obligations to us under the Franchise Agreement. You and each Owner and spouse must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with the Franchised Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), neither you nor your Owners and their spouses will participate in any competitive business located within and/or servicing customers located within your Designated Territory and a 25 mile radius surrounding your Designated Territory. Further you will not participate in any competitive business located within and/or servicing customers located within a 10 mile radius of any other Bang Cookies Shop and/or the designated territory of any other Bang Cookies Shop. Your managers and all other employees and agents with access to our confidential information will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, franchisees, their owners, and their spouses are restricted from participating in any competitive business within a 10-mile radius of any other Bang Cookies shop. This restriction applies during the term of the Franchise Agreement.
Specifically, the agreement states that franchisees and their associated parties cannot engage in competitive businesses located within or servicing customers within a 10-mile radius of any other Bang Cookies shop or the designated territory of any other Bang Cookies shop. This measure aims to protect the brand and prevent unfair competition among franchisees within the Bang Cookies system.
This non-compete obligation extends not only to the franchisee but also to their owners and spouses, requiring them to sign agreements ensuring compliance. This comprehensive approach ensures that all parties with a vested interest in the franchise are committed to avoiding competitive activities that could harm the Bang Cookies brand. This restriction is in place to maintain the integrity of the Bang Cookies franchise system and protect the interests of all franchisees.