After the Better Blend Franchise Agreement expires or is terminated, what is the geographic restriction on the Guarantor's involvement with a Competitor?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
ial Information belonging to BBF. This Section will survive the termination or expiration of the Franchise Agreement indefinitely.
3. Covenants Not to Compete.
- (a) Restriction In Term. During the term of the Franchise Agreement, 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.
- (b) Restriction Post Term. 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 Better Blend's 2024 Franchise Disclosure Document, the Guarantor faces geographic restrictions regarding involvement with a competitor for a period of two years after the Franchise Agreement expires or is terminated. Specifically, the Guarantor cannot have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
This restriction applies within five miles of the 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. If the Franchise Agreement is terminated before the territory is determined, the area of non-competition will be the Site Selection Area and within five miles of any other Better Blend business operating on the date of termination.
For a Better Blend business without a defined territory, its territory is considered a 3-mile radius for the purposes of this non-compete clause. If the Guarantor fails to comply with these obligations during the restrictive period, the period will be extended by one day for each day of noncompliance, which could further prolong the restriction.