What geographic areas are included in the non-compete agreement after leaving a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
odwill associated with Franchisor's marks and the System.
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- 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.
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, the non-compete agreement restricts franchisees and their employees from engaging in competitive business activities during their position with the franchisee and for two years after leaving their position. This agreement applies to any business that offers or sells pizza, pizza products, Italian-style food, or other food items similar to those offered by Beggars Pizza.
The geographic scope of the non-compete includes (i) the franchisee's territory as defined in the franchise agreement, (ii) a 10-mile radius from the franchisee's Beggars Pizza restaurant, or (iii) a 10-mile radius of any business operating under Beggars Pizza's marks. This means that after leaving a Beggars Pizza franchise, a franchisee or their employee cannot be involved in a competing pizza business within these defined areas for a period of two years.
Beggars Pizza also states that the franchisor can reduce the scope of any covenant set forth in the agreement at their sole discretion without the franchisee's consent, effective immediately upon written notice. The agreement is governed by Illinois law, and any changes must be made in writing and signed by both the franchisee and the employee. This non-compete agreement aims to protect Beggars Pizza's market and confidential information by preventing former franchisees and employees from using their knowledge to compete unfairly within a specific geographic area and timeframe.