What is considered a 'Competitor' to a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
13.2 Covenants Not to Compete.
- (a) Restriction In Term. During the term of this Agreement, neither Franchisee, any Owner, nor any spouse of an Owner (the "Restricted Parties") 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.
- (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.
- (c) Interpretation. The parties agree that each of the foregoing covenants is independent of any other covenant or provision of this Agreement. If all or any portion of the covenants in this Section is held to be unenforceable or unreasonable by any arbitrator or court, then the parties intend that the arbitrator or court modify such restriction to the extent reasonably necessary to protect the legitimate business interests of BBF. Franchisee agrees that the existence of any claim it may have against BBF shall not constitute a defense to the enforcement by BBF of the covenants of this Section. If a Restricted Party fails to comply with the obligations under this Section during the restrictive period, then the restrictive period will be extended an additional day for each day of noncompliance.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, a 'Competitor' is defined within the context of covenants not to compete. During the term of the Franchise Agreement, the franchisee, any owner, or any spouse of an owner is restricted from having any direct or indirect involvement with a Competitor. This includes ownership interest, lending money or providing financial assistance, providing services, or being employed by a Competitor.
Post-term, for two years after the agreement expires or is terminated, these restrictions continue. The restricted parties cannot have any ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by any Competitor within five miles of the franchisee's territory or within five miles of any other operating Better Blend business. If the territory hasn't been determined before termination, the non-competition area will be the Site Selection Area and within five miles of any other Better Blend business.
If a Better Blend business doesn't have a defined territory, its territory is considered a 3-mile radius for the purposes of these restrictions. These covenants are independent, and if any part is deemed unenforceable, the intention is for the arbitrator or court to modify the restriction to protect Better Blend's business interests. The existence of any claim against Better Blend does not excuse compliance with these non-compete obligations, and any noncompliance extends the restrictive period by the number of days of noncompliance.