Can Bor Restoration merge with a competitive business, and under what condition is this allowed?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
Therefore, during the Initial Term, and for any Successor Franchise Term, you agree that you will refrain in any capacity or at any location from owning, operating, leasing, franchising, conducting, consulting with, engaging in, having any interest in, assisting any Person engaged in, or acting as an employee, consultant, partner, officer, director or shareholder for any other Person engaged in a wholesale, retail, or other business that is a Competitive Business, except with our prior written consent which consent may be granted or withheld for any reason or no reason.
15.2 Post-Term Covenant Not to Compete
Upon the Transfer, expiration, or earlier termination of this Franchise Agreement for any reason and a period of 36 full months after that, you agree that you will refrain in any capacity or at any location from owning, operating, leasing, franchising, conducting, consulting with, engaging in, having any interest in; assisting any Person for its own account, or acting as an employee, consultant, partner, officer, director or shareholder for any other Person engaged in any wholesale, retail, or other business that is a Competitive Business within, (i) your Exclusive Territory or the territory of another franchisee, company-owned or
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, franchisees are restricted from involvement with competitive businesses during the term of their agreement. Specifically, during the Initial Term and any Successor Franchise Term, a franchisee cannot own, operate, or have any interest in a business that is considered a Competitive Business. This restriction extends to various roles, including owner, operator, consultant, employee, or shareholder.
The only way a franchisee can be involved with a Competitive Business during the term of the agreement is with Bor Restoration's prior written consent. This consent can be granted or withheld for any reason, or for no reason at all, giving Bor Restoration broad discretion in this matter.
After the franchise agreement expires, is transferred, or is terminated early, a franchisee is still restricted from engaging in a Competitive Business for 36 months. This restriction applies within the franchisee's Exclusive Territory or the territory of another franchisee, company-owned, or affiliate-owned location. These restrictions are designed to protect Bor Restoration's proprietary information and market position.