Does the restriction on business dealings with Restricted Customers in the Bevaris Alliance agreement apply during the term of the agreement?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement places restrictions on business dealings with Restricted Customers both during the term of the agreement and after its termination or expiration. Specifically, during the term of the agreement, franchisees are prohibited from being involved with the provision of goods or services to, or otherwise having any business dealings with, any Restricted Customer in the course of any business concern which is in competition with any Restricted Business.

This restriction means that while operating a Bevaris Alliance franchise, a franchisee cannot engage in business with individuals or entities considered Restricted Customers if that business competes with a Restricted Business. A Restricted Customer is defined as any firm, company, or person who, during the 12 months prior to the date of termination of the agreement, was a customer of or in the habit of dealing with the franchisee. A Restricted Business is any business of Bevaris Alliance that is similar to the franchisee's business.

This clause aims to protect Bevaris Alliance's customer base and prevent franchisees from leveraging their access to customers gained through the franchise to benefit competing businesses. Franchisees should carefully consider this restriction, as it limits their ability to engage in other business ventures, even with former customers, during the term of the franchise agreement and for a period of 24 months after termination or expiration of the agreement.

It is important for prospective franchisees to fully understand the scope of these restrictions and how they might impact their business activities, both during and after the franchise term. Understanding the definitions of "Restricted Customer" and "Restricted Business" is crucial for compliance and to avoid potential breaches of the franchise agreement.