factual

What section of the Bhc Master Franchise Agreement addresses post-termination competition?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

11.2 Post Termination Non-Competition Covenants.

  • (a) For a period of two years after the date ("Termination Date") this Agreement is terminated, is canceled, or expires without renewal pursuant to section 5.2 of this Agreement, Master Franchisee agrees that neither Master Franchisee nor any Principal Equity Operator will (either directly or indirectly, for itself or themselves, or through, on behalf of, or in conjunction with, any person, persons, partnership, corporation or other entity) operate, manage, own, assist or hold an interest in (direct or indirect as an employee, officer, director, shareowner, partner or otherwise), or engage in, any competing business selling goods or offering services equivalent to BHC Products or the Franchised Business, within a radius of 25 miles of Master Franchisee's Territory or any other authorized retail location selling BHC Products, without Franchisor's express prior written consent, which consent may be withheld in Franchisor's sole and absolute discretion. Following termination or expiration of this Agreement, Master Franchisee must always refrain from any use, direct or indirect, of any Proprietary Information or Trade Secrets.
  • (b) If any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this Agreement or the parties hereto limits Franchisor's rights under section 11.2(a) above, then the section will be deemed amended (or deleted) to conform to the requirements of such laws and regulations, but in such event (unless deleted) the provisions of the Agreement thus affected will be amended only to the extent necessary to bring it within the requirements of the law or regulation.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, section 11.2 of the Master Franchise Agreement details the post-termination non-competition covenants.

Specifically, for two years after the termination, cancellation, or expiration of the agreement, the Master Franchisee and any Principal Equity Operator are prohibited from engaging in any competing business that sells goods or offers services equivalent to Bhc Products or the Franchised Business. This restriction applies within a 25-mile radius of the Master Franchisee's Territory or any other authorized retail location selling Bhc Products. Bhc must provide express prior written consent to waive this restriction, and Bhc can withhold this consent at its discretion.

Furthermore, after the agreement terminates or expires, the Master Franchisee must not use any Proprietary Information or Trade Secrets. If any law or regulation limits Bhc's rights under section 11.2(a), that section will be amended to conform to those legal requirements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.