Does the non-compete agreement apply if I only provide advice to a business competitive with Beggars Pizza?
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.
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, the non-compete agreement extends to providing advice to a competitive business. Specifically, while employed by a Beggars Pizza franchisee and for two years after leaving that position, an individual cannot provide any assistance or advise to any business that offers similar food items to Beggars Pizza and is located within a certain radius of a Beggars Pizza restaurant.
This restriction applies to anyone in a position with a Beggars Pizza franchisee who has access to the franchisor's confidential information. This includes managers and other personnel. The agreement specifies that during this period, one cannot "provide any assistance or advise to" a competitive business. This clause is broad and would likely include offering consulting services or advice to a competing pizza restaurant.
This non-compete agreement is acknowledged by the franchisee and is construed under the laws of Illinois. Beggars Pizza also states that they are a third-party beneficiary of the agreement and may enforce it solely and/or jointly with the franchisee. Violating the agreement could result in an injunction preventing further violation, as well as the responsibility to pay all costs incurred, including attorney's fees, if the agreement is enforced against you.