Does the Beauty Bungalows franchise agreement specify any time limitations on the non-compete clause related to conflicting businesses for Beauty Bungalows?
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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- I agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 48–177)
What This Means (2025 FDD)
According to the 2025 Beauty Bungalows Franchise Disclosure Document, a restrictive covenant applies to individuals who are managers of the Franchised Business or officers/directors/managers/partners of the Franchisee. This agreement stipulates that these individuals cannot be involved in any Competing Business for one year after their employment with the Franchisee ends, regardless of the reason for termination.
This restriction applies within a 10-mile radius of the Beauty Bungalows Premises or within a 10-mile radius of any other Beauty Bungalows business existing when their employment with the Franchisee ceases. Furthermore, during this one-year period, these individuals are prohibited from engaging in the franchising or licensing of any Competing Business at any location. They are also barred from taking actions to divert business away from the Franchised Business to any Competing Business or from soliciting the Franchisee's former customers or employees for any competitive business purpose.
Beauty Bungalows also retains the right to modify the scope of any covenant set forth in the agreement, or any portion thereof, without the consent of the manager, officer, director, or partner. This modification becomes effective immediately upon written notice. The company is a third-party beneficiary of this agreement and may enforce it, solely and/or jointly with the Franchisee.