What geographic restrictions apply to the Beyond Juicery Eatery Developer and Principals regarding Competing Businesses after the expiration or termination of the agreement?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) Developer and Principal Owners, and Developer's officers, directors, shareholders, partners, members, and managers, (if any) acknowledge that their respective entire knowledge of the operation of a Beyond Juicery + Eatery Restaurant and the System, including without limitation the knowledge or know-how regarding the Standards and Specifications and operating procedures of the services and activities, is derived from information we disclose to you and that certain information is proprietary, confidential, and constitutes our Trade Secrets. You and your Principal Owners, officers, directors, shareholders, partners, members, and managers (if any), jointly and severally, agree that at all times during and after the Term of this Agreement, you will maintain the absolute confidentiality of all such proprietary information and will not disclose, copy, reproduce, sell or use any such information in any other business or in any manner not specifically authorized or approved in advance in writing by us. We require that you obtain nondisclosure and confidentiality agreements and covenants not to compete in a form satisfactory to us from the individuals listed in the first sentence of this paragraph and other key employees.
- (10) You must comply with all requirements of all applicable federal, state, and local laws, rules and regulations.
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery FDD, the Area Development Agreement includes stipulations regarding confidentiality and intellectual property, but it does not explicitly detail geographic restrictions on the Developer or Principals related to competing businesses after the agreement's term. However, the FDD does state that in California, Section 16.05 of the Franchise Agreement contains a covenant not to compete that extends beyond the expiration or termination of the Agreement; this covenant may not be enforceable under California Law.
Beyond Juicery Eatery requires that the Developer and Principal Owners acknowledge that their knowledge of the Beyond Juicery + Eatery Restaurant operation and System is derived from the franchisor and that this information is proprietary, confidential, and constitutes trade secrets. The Developer and Principal Owners must agree to maintain the absolute confidentiality of this information during and after the term of the agreement and not disclose, copy, reproduce, sell, or use any such information in any other business without written authorization from Beyond Juicery Eatery.
Beyond Juicery Eatery requires the Developer to obtain nondisclosure and confidentiality agreements and covenants not to compete from the individuals listed in the first sentence of paragraph (9) and other key employees. Because the FDD does not provide specific geographic limitations or the duration of the non-compete obligations, prospective developers should seek clarification from Beyond Juicery Eatery regarding these restrictions and consult with legal counsel to understand the full scope and enforceability of these covenants, especially in their specific state or region.