What is the geographic scope of the non-compete agreement for a Bb.Q Chicken franchisee during the term of the agreement?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration for such specialized training, trade secrets and confidential information (including, without limitation, information regarding the operational, sales, promotional and marketing methods and techniques of us and the System which are beyond the present skills and experience of you and the Principal(s) and your managers and employees), you and the Principal(s) covenant that with respect to you, during the term of this Agreement, except as otherwise approved in writing by us, which approval may be withheld or denied in our sole and absolute discretion, neither you nor any of the Principal(s) shall, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person(s), partnership or corporation:
- (a) Divert, or attempt to divert, any business or customer of the Franchised Business to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is restricted from diverting business or customers to competitors. This includes actions that could harm the goodwill associated with Bb.Q Chicken's brand and system, or interfering with the business of the franchisor or other Bb.Q Chicken franchisees. This restriction applies to both the franchisee and their principals.
The non-compete agreement prevents franchisees and their principals from engaging in activities that could harm Bb.Q Chicken's business or brand. This includes directly or indirectly diverting customers, performing actions detrimental to the brand's goodwill, or interfering with the operations of the franchisor or other franchisees. The agreement emphasizes protecting Bb.Q Chicken's market position and the integrity of its franchise network.
However, the FDD excerpts provided do not specify a geographic scope for the non-compete agreement during the term of the agreement. The document only mentions a geographic restriction of one-half (0.5) mile radius that applies after the expiration or termination of the franchise agreement. Therefore, it is important for a prospective franchisee to clarify with Bb.Q Chicken the specific geographic boundaries of the in-term non-compete obligations to fully understand the restrictions they will be subject to during the franchise term.