What is the duration of the non-competition covenant after the Bevaris Alliance franchise is terminated or expires?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for a period of time after the franchise agreement expires or is terminated. Specifically, the FDD states that franchisees are prohibited for 24 months from expiration or termination of the franchise from having a connection with a competing business. This restriction is detailed in Section 20.1 of the franchise agreement.

This means that if a franchisee's agreement ends, either through choice or termination by Bevaris Alliance, the franchisee cannot be involved with a similar or competing business for two years. This includes owning, operating, or having any kind of interest or affiliation with such a business. The purpose of this covenant is to protect Bevaris Alliance's market share, trade secrets, and customer relationships.

Non-compete clauses are common in franchise agreements to protect the franchisor's business model and market. The enforceability of such clauses can vary by state, but a 24-month restriction is fairly standard. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same industry after leaving the Bevaris Alliance system. It is advisable to seek legal counsel to fully understand the scope and enforceability of the non-compete agreement in their specific jurisdiction.