What is the definition of 'Restricted Customer' according to the Bevaris Alliance agreement?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a 'Restricted Customer' is defined as any firm, company, or person who, during the 12 months prior to the termination date of the franchise agreement, was a customer of the franchisee or had a habit of dealing with the franchisee. This definition is important because it identifies the entities that a franchisee is restricted from soliciting or conducting business with after the termination of the franchise agreement.

This restriction is further detailed in Section 20.1 of the FDD, which outlines that for 24 months after the termination or expiration of the agreement, the franchisee and individual are prohibited from soliciting or enticing away the business or custom of a Restricted Customer to provide goods or services in competition with any Restricted Business. They are also restricted from providing goods or services to, or having any business dealings with, any Restricted Customer in the course of any business concern that competes with a Restricted Business.

These restrictions are designed to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees. However, clause 20.2 provides an exception, allowing the franchisee or individual to hold an investment of not more than 5% of the total issued share capital of any company, regardless of whether it is listed on a recognized stock exchange. Prospective franchisees should carefully consider these restrictions and their potential impact on their business activities after the franchise agreement ends.