Does the Beauty Bungalows franchise agreement specify any time limitations on the non-compete clause?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
s, hair loss treatments services and hair treatment services and other similar personal services. (collectively, a "Competing Business"). I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose.
- 7.1 Post-Term Restrictive Covenant for Controlling Person of Franchised Business or Manager/Officers/Directors of Franchisee. In the event I am a manager of the Franchised Business, or an officer/director/manager/partner of Franchisee that has not already executed a personal guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of one year after the expiration or termination of my employment with Franchisee for any reason: (i) at or within a 10-mile radius of the Premises; or (ii) within a 10-mile radius of any other Beauty Bungalows business that exists at the time my employment with Franchisee ceases through the date of my involvement with the Competing Business. I also agree that I will not be involved in the franchising or licensing of any Competing Business at any location or undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose, during this one-year period following the termination or expiration of my employment with the Franchisee.
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Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, the franchise agreement does include time limitations regarding non-compete clauses. Specifically, if a manager, officer, director, manager, or partner of the franchisee has not already executed a personal guaranty agreeing to be bound by the terms of the Franchise Agreement, they are subject to a one-year non-compete restriction after their employment ends.
During this one-year period, these individuals are prohibited from being involved in any competing business within a 10-mile radius of the Beauty Bungalows premises or any other Beauty Bungalows location that exists when their employment ceases. They are also restricted from engaging in franchising or licensing any competing business at any location, diverting business from the franchised business, or soliciting the franchisee's former customers or employees for competitive purposes.
This non-compete agreement is construed as independent of other covenants within the agreement. The document also states that Beauty Bungalows has the right to reduce the scope of any covenant set forth in the agreement, including the non-compete clause, without the consent of the franchisee, effective immediately upon written notice. This provides Beauty Bungalows with flexibility in enforcing or modifying the non-compete agreement as needed.