What constitutes a 'Competitive Business' in the context of the Buff City Soap non-compete agreement?

According to Buff City Soap's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined as any retail establishment that Buff City Soap determines to be the same as or substantially similar to its Makeries. This includes, but is not limited to, personal body care product retail establishments or chains that feature products free of artificial detergents, surfactants, dyes, or harsh chemicals.

Additionally, any retail establishment that has soaps, lotions, bath bombs, and similar facial, body, and hair care products collectively accounting for 25% or more of its average monthly gross sales is considered a Competitive Business. This calculation is based on the preceding 12 months of sales, or if the establishment has been operating for less than 12 months, the number of full calendar months of operation.

However, the definition of 'Competitive Business' specifically excludes other businesses that are licensed by Buff City Soap or any of its affiliates, as well as the franchisee's existing brands. This means that a franchisee's pre-existing businesses, if any, that compete with Buff City Soap are not subject to the non-compete restrictions. This definition is important for prospective franchisees to understand, as it outlines the scope of the non-compete agreement and what types of businesses they are restricted from operating during and after their franchise term.