Does the non-competition covenant in the Bhc Multi-Unit Master Franchise Agreement apply to all locations?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Multi-Unit Master Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition covenants during the term of the franchise | 5.1 | No involvement in competing business anywhere. |
| s. Non-competition | 11.1 | No competing business for two years within 25 miles of your Master Franchised BHC Restaurant or any other Master Franchised BHC Restaurant or other retail location (this obligation also applies to you if you assign your franchise). The MFA refers to the confidentiality and non-competition covenant in the last MFA you sign. (This provision is subject to state law.) |
| covenants after | ||
| the franchise is | ||
| terminated or | ||
| expires |
Source: Item 17 — Renewal, Termination, Transfer, And Dispute Resolution (FDD pages 43–49)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the non-competition covenant during the term of the franchise agreement prohibits involvement in any competing business anywhere. This means that while you are a Bhc franchisee, you cannot be involved in any competing business, regardless of its location. This is a broad restriction that applies to all locations, not just those near your franchised business.
After the franchise is terminated or expires, the non-competition covenant changes. It restricts you from engaging in any competing business for two years within 25 miles of your Master Franchised Bhc Restaurant, any other Master Franchised Bhc Restaurant, or any other retail location. This post-term restriction is more limited geographically than the restriction during the franchise term.
It is important to note that these non-competition provisions are subject to state law, which may affect their enforceability. Prospective franchisees should consult with legal counsel to understand the specific implications of these covenants in their state.