Who are considered 'Restricted Parties' under the Better Blend Agreement?

According to Better Blend's 2024 Franchise Disclosure Document, the term 'Restricted Parties' refers to the franchisee, any owner of the franchise, and any spouse of an owner. This definition is relevant in the context of covenants not to compete, both during the term of the franchise agreement and for a period after the agreement expires or is terminated.

During the term of the agreement, these 'Restricted Parties' are prohibited from having any ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by any competitor of Better Blend. This restriction ensures that franchisees and their closest family members are fully committed to the success of their Better Blend business and do not divert resources or knowledge to competing ventures.

After the franchise agreement ends, the non-compete restrictions continue for two years. During this post-term period, 'Restricted Parties' are barred from engaging with any competitor within five miles of the franchisee's territory or within five miles of any other Better Blend location. This extended restriction aims to protect Better Blend's market share and prevent former franchisees from using their experience to benefit rival businesses in the immediate vicinity.

Better Blend may also request that the franchisee's general manager and other key employees sign a confidentiality and non-compete agreement. This ensures that those in key positions within the franchise operation are also bound by similar restrictions, further safeguarding Better Blend's confidential information and competitive advantage.