What constitutes a 'Restricted Business' according to the Bevaris Alliance agreement?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a 'Restricted Business' is defined as any business of the Franchisor that is similar to the Franchisee's Business. This definition is important in the context of the franchise agreement, particularly concerning post-termination restrictions.

Specifically, the franchise agreement outlines restrictions to protect Bevaris Alliance's confidential information, trade secrets, and business connections, as well as those of its other franchisees. During the term of the agreement and for 24 months after termination or expiration, franchisees are restricted from engaging in activities that compete with Bevaris Alliance or its other franchisees. This includes soliciting customers, employing or enticing away employees, or being involved with any business concern that competes with a 'Restricted Business'.

These restrictions are designed to prevent a former franchisee from using the knowledge and experience gained while operating a Bevaris Alliance franchise to directly compete with the franchisor or other franchisees in the system. However, there are exceptions, such as holding a small investment (no more than 5% of the total issued share capital) in a company, or being involved in a business that does not compete with any 'Restricted Business' due to geographical location or the nature of the services provided. Franchisees should carefully review these restrictions and exceptions to understand their obligations and limitations both during and after the franchise term.