What is the radius, in miles, from a Beggars Pizza restaurant that the non-compete agreement covers?
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.
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 restricts certain activities within a specific geographic area. Specifically, as an employee of a Beggars Pizza franchisee, the agreement stipulates that for two years after leaving their position, the employee cannot be involved with any business that offers or sells similar food items to Beggars Pizza within a 10-mile radius of a Beggars Pizza restaurant. This restriction applies to owning, operating, or being employed by such a business.
This non-compete agreement is designed to protect Beggars Pizza's market and confidential information. The agreement prevents former employees from using their knowledge of Beggars Pizza's operations and customer base to benefit a competing business within a defined area. This measure aims to maintain the competitive advantage of Beggars Pizza restaurants and safeguard the interests of both the franchisor and the franchisees.
For a prospective Beggars Pizza franchisee, this non-compete clause has several implications. It ensures that their investment is protected from competition by former employees who might try to start a similar business nearby. However, it also means that the franchisee must enforce this agreement to protect their business interests, which could involve legal action if a former employee violates the terms. Franchisees should be aware of the costs associated with enforcing such agreements and factor that into their business planning. The franchisor can also enforce the agreement.
It is important to note that the franchisor has the right to reduce the scope of any covenant set forth in the agreement in its sole discretion without the franchisee's consent effective immediately upon the franchisee's receipt of written notice thereof. The franchisee must comply with any covenant as so modified.