What is the duration of the post-term non-compete restriction for a Baya Bar franchise?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.5.2 Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Franchisee and Principals, if any, shall not, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any café or business serving products similar to the System within five (5) miles of the Territory or any Baya Barlocation; or (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Baya Bar franchisees.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, the post-term non-compete restriction lasts for 24 months following the expiration or termination of the Franchise Agreement. During this period, the franchisee and any principals are restricted from engaging in activities that could harm the Baya Bar system.
Specifically, the franchisee cannot divert business from the franchised location or other Baya Bar franchises to competitors. They are also prohibited from participating as an owner, partner, director, officer, employee, consultant, or agent in any café or business serving similar products within a five-mile radius of the Territory or any Baya Bar location.
Additionally, the franchisee must not perform any action that could be detrimental to the goodwill associated with the Baya Bar brand or interfere with the business of Baya Bar or its franchisees. This non-compete agreement aims to protect Baya Bar's market position and prevent former franchisees from using confidential information or operational knowledge gained during their franchise term to compete against the brand.