factual

After the Better Blend agreement expires, what is the geographic radius of the non-compete restriction around a Better Blend business with a defined territory?

Better_Blend Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (b) Restriction Post Term. For two years after this Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer), no Restricted Party shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor within five miles of Franchisee's Territory or within five miles of the territory of any other Better Blend business operating on the date of expiration, termination, or transfer, as applicable. If this Agreement is terminated before the Territory is determined, then the area of non-competition will be the Site Selection Area and within five miles territory of any other Better Blend business operating on the date of termination. If a given Better Blend business does not have a defined territory, then for purposes of this Section its territory will be deemed to be a 3-mile radius.

Source: Item 22 — CONTRACTS (FDD page 43)

What This Means (2024 FDD)

According to the 2024 Better Blend Franchise Disclosure Document, a franchisee is subject to a post-term non-compete restriction. This restriction lasts for two years after the franchise agreement expires or is terminated.

The geographic scope of this restriction depends on whether the Better Blend business has a defined territory. If the business has a defined territory, the franchisee cannot have any involvement with a competing business within five miles of their former territory or within five miles of any other Better Blend location.

If the Better Blend business does not have a defined territory, then the territory will be considered a 3-mile radius for non-compete purposes. If the agreement is terminated before a territory is determined, the non-compete area will be the Site Selection Area and within five miles of any other Better Blend business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.