For how long after termination of the Bevaris Alliance agreement is a franchisee prohibited from being involved with a competing business?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, franchisees face certain restrictions regarding competitive activities following the termination or expiration of their franchise agreement. Specifically, both the franchisee and any individual involved with the franchise are prohibited from engaging in activities that could harm Bevaris Alliance's business interests. These restrictions are in place to protect the confidential information, trade secrets, and business connections of Bevaris Alliance and its other franchisees.

During the term of the franchise agreement and for a period of 24 months after its termination or expiration, franchisees are restricted from being involved with any business concern that competes with any restricted business. This includes acting as an agent, consultant, director, employee, owner, partner, or shareholder. This broad definition aims to prevent franchisees from using their knowledge and experience gained through the Bevaris Alliance system to benefit a competing entity.

However, the restrictions do allow for some exceptions. Franchisees or individuals can 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 stock exchange. This exception allows franchisees to diversify their investments without being penalized for minor holdings in potentially competing businesses. The 24-month restriction period is a standard practice in franchising to protect the franchisor's interests while allowing former franchisees a reasonable period to transition to other ventures.