Does the non-competition clause in the Beyond Juicery Eatery Franchise Agreement prevent a franchisee from being a consultant to a Competing Business?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
3) Non-competition.
a) The Franchisee Parties acknowledge that the Confidential Information and all other aspects of the Company's System are highly valuable assets of the Company, that the Company owns the Confidential Information, and the Franchisee Parties agree that the Franchisee Parties, including but not limited to Franchisee's officers, directors, members, executives, managers, and Owner's immediate family members and members of Owner's household, shall not, without the prior written consent of the Company (i) during the term of the Franchise Agreement, directly or indirectly, including, without limitation, individually or in partnership or jointly or in conjunction with any person, as principal, agent, shareholder, member, partner, or other equity owner, or in any other manner whatsoever, carry on, be engaged in, or be concerned with or interested in, or advise, lend money to, guarantee the debts or obligations of, or permit their name(s) or any part thereof to be used or employed by any person or entity engaged in, or concerned with or interested in any Competing Business (except that this restriction shall not apply to an interest for investment purposes only in any Publicly-Held Entity, so long as such Franchisee Party is not a director, officer, or manager thereof, or consultant thereto); and (ii) for a period of thirty-six (36) months from the date of expiration, termination, or any other end of the Franchise Agreement, regardless of the reason or reasons, directly or indirectly, including, without limitation, individually or in partnership or jointly or in conjunction with any person, engage as an owner, member, shareholder, partner, equity owner, director, officer, employee, consultant, salesperson, representative, or agent of, in any other capacity, in any Competing Business within:
(1) The Designated Area;
(2) The geographic area encompassed by the Designated Area of any of the Company's franchisees as of the date of termination, expiration, or other end of the Franchise Agreement; or
(3) A geographic area that is contained in a circle having a radius of twenty (20) miles outward 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.
Source: Item 22 — CONTRACTS (FDD page 60)
What This Means (2025 FDD)
According to the 2025 Beyond Juicery Eatery Franchise Disclosure Document, the non-competition clause restricts a franchisee from engaging with a Competing Business in certain capacities, including as a consultant. During the term of the Franchise Agreement, a franchisee cannot, without prior written consent from Beyond Juicery Eatery, directly or indirectly be concerned with or interested in any Competing Business. This restriction includes acting as a consultant to a Competing Business.
Following the termination or expiration of the Franchise Agreement, the franchisee is further restricted for a period of thirty-six (36) months. During this time, the franchisee cannot engage as a consultant in any Competing Business within the Designated Area, the Designated Area of any of Beyond Juicery Eatery's other franchisees, or within a twenty (20) mile radius of these Designated Areas or any corporate or affiliate owned Restaurants.
This non-compete agreement has significant implications for a franchisee. It limits their ability to work in or advise similar businesses both during the franchise term and for a set period afterward, within specific geographic boundaries. A franchisee should carefully consider these restrictions and how they might affect their future career options and earning potential. It is also important to understand the definition of "Competing Business" as defined in the Franchise Agreement to fully grasp the scope of these limitations.