What is the duration of the non-compete period after an employee ceases their position 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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a non-compete agreement applies to employees of a Beggars Pizza franchisee. While employed and for two years after leaving their position, an employee is restricted from engaging in any business that offers or sells pizza, pizza products, Italian-style food, or similar food items to those offered by Beggars Pizza.
This restriction applies if the 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 agreement aims to protect Beggars Pizza's market and trade secrets by preventing former employees from using their knowledge to directly compete with existing franchises.
Beggars Pizza is a third-party beneficiary of this agreement and can enforce it against the employee, independently or jointly with the franchisee. Violating the agreement could result in an injunction to prevent further breaches, in addition to other legal remedies. The employee is also responsible for covering all costs, including attorney's fees, if the agreement is enforced against them. This non-compete agreement is governed by Illinois law.