After the Better Blend Franchise Agreement expires or is terminated, what is the geographic radius around another Better Blend business's territory where the Guarantor is restricted from being involved with a Competitor?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
For two years after the Franchise Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer by Guarantor), Guarantor shall not 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 located 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 the Franchise Agreement is terminated before the Territory is determined, then the area of non-competition will be the Site Selection Area and within five miles the territory of any other Better Blend business operating on the date of termination.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, for two years after the Franchise Agreement expires or is terminated, the Guarantor is restricted from involvement with a Competitor within five miles of the franchisee's territory or within five miles of any other Better Blend business operating on the date of expiration or termination. This restriction applies to having any ownership interest in, lending money or providing financial assistance to, providing any services to, or being employed by a Competitor.
If the Franchise Agreement is terminated before the territory is determined, the non-competition area will be the Site Selection Area and within five miles of any other Better Blend business operating at the time of termination. If a Better Blend business does not have a defined territory, its territory is considered a 3-mile radius for the purposes of this restriction.
This post-term covenant not to compete is designed to protect Better Blend's business interests by preventing former franchisees and their guarantors from using the franchisor's confidential information and business methods to compete against the Better Blend system after the franchise relationship ends. Prospective franchisees should carefully consider the implications of these restrictions, especially if they have prior experience in the smoothie or juice industry or plan to remain in the same geographic area after the franchise agreement expires or is terminated.