Do the Franchisee Parties' obligations to Beyond Juicery Eatery continue after the Franchise Agreement ends?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
tward from the boarders of the Designated Area, or the designated area or location of any other franchisee of the Company or any corporate or affiliate owned Restaurants as of the date of the termination, expiration, or other end of the Franchise Agreement.
- b) The Franchisee Parties acknowledge and agree that if any of the Franchisee Parties should violate the provisions of this Section 3 with respect to the operation of a Competing
Business following expiration, termination, or any other end of the Franchise Agreement, then the period for which the prohibition stated therein shall be extended until thirty-six (36) months following the date such Franchisee Parties ceases all activities that are in violation of this Section 3.
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- Effect of Agreement. The Company's sole obligation under this Agreement is to provide the Confidential Information to the Franchisee Parties at the outset of the parties' business relationship so that the Franchisee Parties may open and operate the Franchised Business. The Company shall have no further obligations under this Agreement once the Company has provided the Information to the Franchisee Parties. Nothing in this Agreement shall be construed to create any additional or continuing obligation of the Company after the Company initially provides the Confidential Information to the Franchisee Parties. The Franchisee Parties' obligations under this Agreement shall continue in effect after termination, expiration, or any other end of the Franchise Agreement, regardless of the reason or reasons, whether such was voluntary or involuntary, and the Company is entitled to communicate the Franchisee Parties' obligations under this Agreement to any third party to the extent deemed necessary by the Company for protection of its rights.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the Franchisee Parties' obligations under the Confidentiality and Nondisclosure Agreement continue even after the Franchise Agreement terminates, expires, or otherwise ends. This applies regardless of whether the end of the agreement is voluntary or involuntary. Beyond Juicery Eatery retains the right to inform third parties about these ongoing obligations to protect its rights.
Specifically, if any Franchisee Party violates the non-compete provisions related to operating a Competing Business after the Franchise Agreement ends, the prohibition period will be extended until 36 months after the Franchisee Parties cease the violating activities. This means that the restrictions on operating a competing business can last longer than the initial term if a franchisee breaches the agreement after it ends.
These restrictions are acknowledged by the Franchisee Parties as reasonable and necessary to protect Beyond Juicery Eatery's business interests and prevent unfair competition. The FDD states that these restrictions are designed to protect Beyond Juicery Eatery and its franchise system and do not disproportionately benefit the company at the franchisee's expense. Prospective franchisees should carefully consider these long-term obligations and restrictions before entering into a franchise agreement with Beyond Juicery Eatery.