For how long after disassociation with the Developer are there competition restrictions for a Buff City Soap Developer's Designated Principal?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
For so long as you are Developer's Designated Principal under the ADA and for a period of two years from disassociation with Developer or date ceasing to be Developer's Designated Principal, you will not, either directly or indirectly, individually or through, on behalf of, or in conjunction with any other person:
- (1) Own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in, either directly or indirectly, any Competitive Business
- (2) Divert or attempt to divert any actual or prospective business or customer of the Makery to any Competitive Business, by direct or indirect inducement or otherwise; or
- (3) Do or perform, directly, any or indirectly, any other act injurious to or prejudicial to the goodwill associated with the Marks and the System
The above covenants apply exclusively in the Territory and the United States of America during the time that you serve as Developer's Designated Principal and within three miles of any then-existing Makery for the two-year period following the date you cease to be Developer's Designated Principal.
If all or any portion of this Agreement is held unreasonable or unenforceable by a tribunal, court or agency having valid jurisdiction in an unappealed final decision to which Developer is a party, you agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by applicable law. If any portion of the restrictions contained in this Agreement are held to be unreasonable, arbitrary or against public policy by any tribunal, court or agency having valid jurisdiction, then the restrictions will be considered divisible, both as to time and to the geographical area, with each month or the specified period being deemed a separate period of time and each radius mile of the restricted territory being deemed a separate geographical area, so that the lesser period of time or geographical area will remain effective and may be enforced against you so long as the same is not unreasonable, arbitrary, or against public policy. If you violate any of the covenants contained herein, and if any court, tribunal or agency action is instituted by Developer to prevent or enjoin such violation, then the period of time during which the covenants of this Agreement apply will be lengthened by a period of time equal to the period between the date of the breach of the terms or covenants contained in this Agreement and the date on which the decree of the disposition of the tribunal, court or agency having valid jurisdiction of the issues upon the merits will become final and not subject to further appeal.
Source: Item 18 — PUBLIC ANNOUNCEMENTS. (FDD pages 186–204)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, a Developer's Designated Principal faces competition restrictions for two years after disassociation with the Developer or ceasing to be the Developer's Designated Principal. During this two-year period, the Designated Principal is restricted from engaging in competitive business activities.
The restrictions include not being able to own, maintain, operate, be employed by, engage in, franchise, lease property to, advise, help, make loans to, or have any interest in any Competitive Business either directly or indirectly. They are also prohibited from diverting or attempting to divert any actual or prospective business or customer of the Makery (Buff City Soap shop) to any Competitive Business. Additionally, the Designated Principal cannot perform any act injurious or prejudicial to the goodwill associated with the Buff City Soap marks and system.
These covenants apply exclusively in the Territory and the United States of America during the time that you serve as Developer's Designated Principal and within three miles of any then-existing Makery for the two-year period following the date you cease to be Developer's Designated Principal. These restrictions are designed to protect Buff City Soap's interests by preventing former Designated Principals from using their knowledge and experience to compete unfairly with the franchise.
It is important for potential Designated Principals to carefully consider these restrictions before entering into an agreement, as they could significantly limit their business opportunities for two years after leaving the Buff City Soap system. The agreement also specifies that if any part of the agreement is deemed unreasonable, the remaining parts will still be enforced to the maximum extent permitted by law.