Is a Bevaris Alliance franchisee allowed to solicit customers from other Bevaris Alliance franchisees after the agreement terminates?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, a franchisee is restricted from soliciting customers from the franchisor or other franchisees for a period of time after the franchise agreement terminates. Specifically, during the term of the agreement and for 24 months after termination or expiration, the franchisee and the individual covenant not to solicit or endeavor to entice away from Bevaris Alliance or any other franchisee the business or custom of a restricted customer with a view to providing goods or services in competition with any restricted business.

This restriction is in place to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its franchisees. It prevents a former franchisee from leveraging the knowledge and relationships gained during the franchise term to unfairly compete with the system. The term 'Restricted Customer' and 'Restricted Business' are likely defined elsewhere in the agreement, and it is important for a prospective franchisee to understand these definitions to fully grasp the scope of this restriction.

This type of non-solicitation clause is common in franchise agreements. The duration of 24 months is a fairly standard length for such restrictions. Prospective franchisees should carefully consider the implications of this clause, particularly if they plan to remain in the same industry after leaving the Bevaris Alliance system. It is important to note that this restriction applies not only to the franchisee company but also to the individual who signed the agreement.