Is a Better Blend franchisee required to enter into a confidentiality and non-compete agreement that violates applicable state law?

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend will not require franchisees to enter into a confidentiality and non-compete agreement that violates applicable state law. However, if Better Blend requests, a franchisee must have their general manager/on-site supervisor (and other key employees that Better Blend reasonably designates) sign a confidentiality and non-compete agreement.

Better Blend's franchise agreement includes covenants not to compete that apply both during the term of the agreement and for two years after the agreement expires or is terminated. These restrictions apply to the franchisee, any owner, and any spouse of an owner, preventing them from having an ownership interest in, lending money to, providing services to, or being employed by any competitor. The post-term restriction applies within five miles of the franchisee's territory or within five miles of any other Better Blend business.

Several state addenda to the franchise agreement address waivers, governing law, and other stipulations to ensure compliance with local franchise laws. For example, the Illinois Rider specifies that any provision requiring the franchisee to waive compliance with Illinois law is void. Similarly, the New York Rider states that the franchisee is not required to assent to any release, assignment, novation, waiver, or estoppel that would relieve Better Blend from any duty or liability imposed by New York Franchise Law. These addenda highlight Better Blend's awareness of and intent to comply with varying state regulations regarding franchise agreements.