What is the definition of '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 because it is used in the context of post-term non-compete restrictions.

Specifically, during the term of the franchise agreement and for 24 months after termination or expiration, franchisees are restricted from being involved with any business concern that is in competition with any Restricted Business. This includes acting as an agent, consultant, director, employee, owner, partner, or shareholder. Franchisees are also prohibited from providing goods or services to any Restricted Customer in the course of any business concern that competes with a Restricted Business.

These restrictions are designed to protect Bevaris Alliance's confidential information, trade secrets, and business connections, as well as those of its other franchisees. However, there are exceptions. Franchisees are allowed to hold up to 5% of the total issued share capital of any company, regardless of whether it competes with a Restricted Business. They can also be involved in a business concern if their duties relate solely to geographical areas where the business does not compete with any Restricted Business, or if their work relates to services or activities they were not materially involved with in the 24 months prior to termination of the agreement.