Who are considered 'Restricted Parties' under the Better Blend non-compete agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the non-compete agreement applies to specific individuals associated with the franchise. During the term of the agreement, 'Restricted Parties' include the franchisee, any owner of the franchise, and any spouse of an owner. These individuals are restricted 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.
After the franchise agreement expires or is terminated, the restrictions continue for two years. During this post-term period, the same 'Restricted Parties' are subject to the same limitations regarding competitive activities. However, these limitations apply only within a specific geographic area: five miles of the franchisee's territory or five miles of any other Better Blend business operating on the date of expiration, termination, or transfer.
If the Better Blend franchise agreement is terminated before a territory is formally determined, the area of non-competition will be the Site Selection Area. This area also includes a five-mile radius around any other Better Blend business operating when the agreement was terminated. If a Better Blend business does not have a defined territory, its territory is considered a 3-mile radius for the purposes of the non-compete agreement.