What is the definition of 'Restricted Customer' in 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 before the termination date of the franchise agreement, was a customer of, or had a habit of dealing with, the franchisee. This definition is important because it ties into the restrictions placed on the franchisee after the agreement ends.

Specifically, the Bevaris Alliance franchise agreement states that for 24 months after the termination or expiration of the agreement, the franchisee cannot solicit or attempt to entice away from Bevaris Alliance or its other franchisees the business or custom of a Restricted Customer. This restriction is in place to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its franchisees.

This means that a franchisee is prohibited from actively pursuing or engaging with customers they served during the last year of their franchise agreement to provide similar services in competition with Bevaris Alliance. This restriction applies if the franchisee starts a similar business or works for a competitor. The restriction aims to prevent a former franchisee from leveraging their established relationships to unfairly compete with the Bevaris Alliance system after leaving the franchise.