What agreement must a designated manager sign regarding covenants not to compete for a Bevaris Alliance franchise?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, if a franchisee is granted the option to appoint a designated manager, that manager must sign a written agreement. This agreement requires the designated manager to maintain the confidentiality of trade secrets, as detailed in Item 14 of the FDD. Additionally, the designated manager must agree to adhere to the covenants not to compete, which are described in Item 17 of the FDD.

This requirement ensures that the designated manager, who is responsible for the day-to-day operations of the Bevaris Alliance business, is legally bound to protect the franchisor's confidential information and refrain from engaging in competitive activities that could harm the franchise. By signing this agreement, the designated manager acknowledges their obligations and responsibilities to the Bevaris Alliance franchise system.

The non-compete agreement typically restricts the manager from working for a competing business during the term of their employment and for a certain period after they leave. The specific terms of the non-compete agreement, such as the duration and geographic scope, are outlined in Item 17 of the FDD and Section 20.1 of the Franchise Agreement. Prospective franchisees should carefully review these provisions to understand the full extent of the restrictions placed on designated managers.

It is common practice in franchising to have non-compete agreements for both franchisees and key personnel like designated managers. This helps protect the franchisor's investment in its brand, trade secrets, and customer relationships. Franchisees should discuss the terms of the non-compete agreement with potential designated managers to ensure they are fully aware of their obligations before signing the agreement.