What is the duration of the non-compete agreement after I cease employment with a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
While in my position with Franchisee and for two (2) years after I cease to be in my position with Franchisee, I will not own, maintain, operate, engage in, be employed by, provide any assistance or advise to, or have any interest in (as owner or otherwise) any business that
- (a) offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by Beggars Pizza® restaurants under the System, and (b) is, or is intended to be, located at or within (i) Franchisee's Territory as defined in Franchisee's franchise agreement with Franchisor (the "Franchise Agreement"), the boundaries of which I acknowledge have been described to me, (ii) a radius of ten (10) miles from the premises of Franchisee's Beggars Pizza® restaurant, or (iii) a radius of ten (10) miles of any business operating under Franchisor's marks.
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- Franchisor is a third-party beneficiary of the Agreement and may enforce it solely and/or jointly with Franchisee. I am aware that my violation of the Agreement will cause Franchisor and Franchisee irreparable harm. I acknowledge and agree that Franchisor and/or Franchisee may apply for the issuance of an injunction preventing me from violating the Agreement in addition to any other remedies they may have at law or in equity. I will pay Franchisor and Franchisee all costs incurred including, without limitation, attorneys' fees, if the Agreement is enforced against me. Due to the importance of the Agreement to Franchisor and Franchisee, any claim I have against Franchisor or Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, the Agreement. If any part of the Agreement is held invalid by a court or agency having valid jurisdiction, the rest of the Agreement is still enforceable, and the part held invalid is enforceable to the extent found reasonable by the court or agency. I agree that all the words and phrases used in the Agreement will have the same meaning as used in the Franchise Agreement and that such meanings have been explained to me.
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- Franchisor may reduce the scope of any covenant set forth in the Agreement in Franchisor's sole discretion without my consent effective immediately upon my receipt of written notice thereof. I will comply with any covenant as so modified.
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- The Agreement will be construed under the laws of Illinois. The only way the Agreement can be changed is in a writing signed by both Franchisee and me.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, as an employee of a Beggars Pizza franchisee, you are subject to a non-compete agreement. While employed and for two years after ceasing employment, you cannot own, maintain, operate, engage in, be employed by, provide assistance or advice to, or have any ownership interest in a business that offers or sells similar food items to Beggars Pizza.
This restriction applies if the competing business is located within the franchisee's territory, within a 10-mile radius of the franchisee's Beggars Pizza restaurant, or within a 10-mile radius of any business operating under Beggars Pizza's marks. This non-compete agreement is designed to protect Beggars Pizza's confidential information and market share.
Beggars Pizza is a third-party beneficiary of this agreement and can enforce it jointly or independently with the franchisee. Violating the agreement could result in an injunction preventing further violation, in addition to other legal remedies. The employee is responsible for all costs, including attorney's fees, if the agreement is enforced against them. The agreement is governed by Illinois law and can only be modified in writing with the consent of both the franchisee and the employee.