Does Beyond Juicery Eatery have the right to operate company-owned Restaurants that compete with franchisees?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
ent upon achievement of a certain sales volume, market penetration, or any other contingency. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
Your Franchise Agreement gives you the right to operate a Restaurant and utilize our Trademarks and System at a single location in the designated area described in Attachment 1 of the Franchise Agreement ("Designated Area"). The Designated Area will typically range from a minimum area of zero (limited to your Restaurant property) to a maximum area of 1 mile. In certain instances, such as the existence of physical boundaries like rivers, multi-landed highways, and the like, the size of the Designated Area will not exceed one half (1/2) mile as measured by us. We negotiate with you on the size of the Designated Area based on various factors such as population and development density,
demographics, traffic patterns, existing locations and viability of those locations, competition, proximity to shopping centers, and market feasibility.
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.
Except as expressly limited by the preceding paragraphs, we and our affiliates retain all rights with respect to Beyond Juicery + Eatery Restaurants, the Trademarks, the sale of similar or dissimilar products and services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
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- The right to establish and operate, and to grant to others the right to establish and operate similar business or any other businesses offering similar or dissimilar products and services through similar or dissimilar channels of distribution, at any locations inside or outside your Territory or Designated Area under trademarks or service marks other than the Trademarks and on any terms and conditions we deem appropriate;
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Source: Item 12 — TERRITORY (FDD pages 42–45)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, franchisees may face competition from outlets that Beyond Juicery Eatery owns. While franchisees are granted a Designated Area, this area is not exclusive. Beyond Juicery Eatery retains the right to operate or franchise other restaurants outside of a franchisee's Designated Area, even if they compete for the same customers. This means that a franchisee's business could be impacted by a company-owned store or another franchise located nearby.
Beyond Juicery Eatery also maintains significant rights regarding alternative channels of distribution. They can establish and operate similar businesses, offering similar products and services, through various channels such as retail manufacturing, ghost kitchens, mobile food trucks, catering, vending, and online sales, both inside and outside a franchisee's territory. These alternative channels may operate under different trademarks.
Furthermore, Beyond Juicery Eatery has the right to acquire businesses that offer similar products and services and franchise or license those businesses, even if they are located within a franchisee's territory. They can also be acquired by a business that operates competitive businesses in the franchisee's territory. These rights allow Beyond Juicery Eatery considerable flexibility in expanding its brand presence and market reach, but they also introduce a potential risk of increased competition for franchisees.
Prospective franchisees should carefully consider the potential for competition from both company-owned stores and alternative distribution channels when evaluating a Beyond Juicery Eatery franchise. Understanding the scope of Beyond Juicery Eatery's rights and the potential impact on their business is crucial for making an informed investment decision.