For how long does the non-competition covenant apply after the termination or assignment of the Bhc Multi-Unit Master Franchise Agreement?

According to Bhc's 2025 Franchise Disclosure Document, if the Multi-Unit Master Franchise Agreement is terminated or expires, the non-competition covenant lasts for two years. During this period, the franchisee is prohibited from engaging in any competing business within a 25-mile radius of their Master Franchised Bhc Restaurant, any other Master Franchised Bhc Restaurant, or any other Bhc retail location. This obligation also applies if the franchisee assigns their franchise. The specific terms of the confidentiality and non-competition covenant are detailed in the last Multi-Unit Master Franchise Agreement signed.

This non-compete clause is a standard provision in franchise agreements, designed to protect Bhc's market share and brand integrity. The two-year restriction and 25-mile radius are fairly typical in the franchise industry, but prospective franchisees should carefully consider the potential impact on their future business opportunities. It is important to note that this provision is subject to state law, which may impose additional limitations or requirements.

A prospective franchisee should carefully evaluate the implications of this non-compete agreement. They should consider whether the geographic restriction and time period are reasonable in their specific market and whether they have any plans to engage in similar businesses after the franchise agreement ends. It is advisable to seek legal counsel to understand the enforceability of the non-compete clause in their state and to negotiate any modifications if necessary.