Are Beverly Anns Cookie Owners bound by the non-competition restrictions outlined in the Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Covenant Not to Compete.
- 3.1 Non-Competition During and After the Term of the Franchise Agreement. Owners acknowledge that as a participant in our system, they will receive proprietary and confidential information and materials, trade secrets, and the unique methods, procedures, and techniques which we have developed. The provisions of the Franchise Agreement governing Franchisee's restrictions on competition both during the term of the Franchise Agreement and following the expiration, termination or transfer of the Franchise Agreement are hereby incorporated into this Franchise Owner Agreement by reference, and Owners agree to comply with and perform each such covenant as though fully set forth in this Franchise Owner Agreement as a direct and primary obligation of Owners. Further, we may seek the same remedies against Owners under this Franchise Owner Agreement as we may seek against Franchisee und
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, owners are indeed bound by the non-competition restrictions outlined in the Franchise Agreement. The Franchise Owner Agreement incorporates the franchisee's non-competition restrictions by reference, making it a direct obligation for the owners. This means that the restrictions on competition that apply to the franchisee also apply to the owners of the franchise.
During the term of the Franchise Agreement, owners are prohibited from engaging in any competitive business activities. This includes owning, operating, or having any interest in a business that competes with Beverly Anns Cookie. They are also prohibited from diverting business away from Beverly Anns Cookie or inducing customers to transfer their business to another entity that is not a Beverly Anns Cookie franchisee.
After the termination, expiration, or transfer of the Franchise Agreement, the non-competition restrictions continue for a period of two years (the "Restricted Period"). During this time, owners are restricted from operating a competitive business within a specific geographic area (the "Restricted Territory"). The Restricted Territory includes a 20-mile radius of the franchisee's territory and a 20-mile radius from all other Beverly Ann's Cookie Truck businesses operating as of the date of termination, expiration, or transfer of the Franchise Agreement. Beverly Anns Cookie may seek remedies against owners who violate these non-competition agreements.