What are the geographic limitations of the non-compete agreement for a former employee of 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 the 2025 Beggars Pizza Franchise Disclosure Document, a former employee of a Beggars Pizza franchisee is subject to certain geographic limitations under the non-compete agreement. Specifically, for a period of two years after leaving their position, the employee cannot be involved with any business that offers or sells pizza, Italian-style food, or similar food items to those offered by 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 means a former employee is restricted from working for a competitor within these defined geographic areas, regardless of whether the competitor is another franchise or an independent business.
Beggars Pizza, as a third-party beneficiary of the agreement, can enforce these non-compete terms either independently or jointly with the franchisee. The FDD also states that Beggars Pizza has the right to reduce the scope of any covenant set forth in the agreement at its sole discretion with written notice. The agreement is governed by Illinois law, and any modifications must be in writing and signed by both the franchisee and the employee.