Who are considered 'Restricted Parties' under the Bombs Away non-compete agreement?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Restriction In Term. During the term of this Agreement, neither Franchisee, any Owner, nor any spouse of an Owner (the "Restricted Parties") shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
- (b) Restriction Post Term. For two years after this Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer), no Restricted Party shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor operating in any of Franchisee's Territory or
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the non-compete agreement applies to specific individuals associated with the franchise. During the term of the agreement, 'Restricted Parties' include the franchisee, any owner of the franchise, and any spouse of an owner. These individuals are restricted from having any ownership interest in, lending money or providing financial assistance to, providing any services to, or being employed by, any competitor of Bombs Away.
After the franchise agreement expires or is terminated, the same restrictions apply to these 'Restricted Parties' for a period of two years. This post-term restriction prevents them from engaging with any competitor operating within the franchisee's territory or the territory of any other Bombs Away business. The restrictions apply from the date of termination or transfer, as applicable.
This non-compete clause is designed to protect Bombs Away's business interests by preventing franchisees and related parties from using their knowledge and resources gained during the franchise term to benefit a competing business. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities before entering into a franchise agreement with Bombs Away.