Are enclosed malls excluded from the Designated Area for a Beyond Juicery Eatery franchise?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
Within your Designated Area, neither we nor our affiliates have or will grant franchises or operate company-owned or affiliate-owned brick and mortar Restaurants using our Trademarks. Notwithstanding the foregoing, under the Franchise Agreement, enclosed malls, institutions (such as without limitation, hospitals, schools, military bases, or convention centers), airports, parks (including theme parks), casinos, and sports arenas will be excluded from your Designated Area and we may open other Restaurants, or franchise the right to open Restaurants to other persons, at any of these locations, regardless of where they are located and regardless of the name under which they operate. As a result, you do not receive an "exclusive" territory since we and our affiliates also have the right, in our sole discretion, to grant or operate other franchises outside of your Designated Area even if they compete for or deliver to customers within your Designated Area. If the Restaurant is located in an enclosed mall, institution, airport, casino, park, or sports arena, then the Franchisee's Designated Area will be limited to the confines of that enclosed mall, institution, airport, casino, park, or sports arena. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 42–45)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, enclosed malls are specifically excluded from a franchisee's designated area. The franchise agreement stipulates that Beyond Juicery Eatery can operate or franchise others to operate restaurants in enclosed malls, regardless of location and name, even if it falls within a franchisee's designated area. This means a franchisee's exclusive territory does not extend to enclosed malls.
This exclusion has significant implications for prospective franchisees. Beyond Juicery Eatery retains the right to open additional locations, either company-owned or franchised to others, within enclosed malls, potentially creating direct competition for the franchisee. If a Beyond Juicery Eatery franchise is located inside an enclosed mall, the franchisee's designated area is limited to the confines of that mall.
This practice is not uncommon in the franchise industry, particularly for food and beverage franchises that seek to maximize their presence in high-traffic areas. However, it's crucial for potential Beyond Juicery Eatery franchisees to understand that their territory rights are limited and that the franchisor can establish competing locations in enclosed malls, institutions, airports, parks, casinos and sports arenas. This could impact the franchisee's potential customer base and revenue.