Must the designated manager for Bevaris Alliance conform with the covenants not to compete?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
The designated manager cannot have an interest or business relationship with any of our business competitors. The designated manager must sign a written agreement to maintain confidentiality of the trade secrets described in Item 14 and to conform with the covenants not to compete described in Item 17.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 16)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, if a franchisee is granted the option to appoint a designated manager, that manager must adhere to specific requirements. The designated manager cannot have any existing business interests or relationships with Bevaris Alliance's competitors.
Furthermore, the designated manager is required to sign a written agreement. This agreement ensures that the manager will maintain the confidentiality of trade secrets, as detailed in Item 14 of the FDD. Additionally, the manager must comply with the covenants not to compete, which are outlined in Item 17 of the FDD.
This requirement ensures that the designated manager is fully committed to the success of the Bevaris Alliance franchise and does not use confidential information or engage in activities that could harm the business. It also protects Bevaris Alliance's competitive advantage by preventing the manager from working for or owning a competing business.