Does the Buona franchise agreement state that adherence to the post-termination non-compete will not deprive franchisees of their ability to earn a living?

According to Buona's 2025 Franchise Disclosure Document, the franchise agreement states that adherence to the post-termination non-compete agreement will not deprive franchisees of their ability to earn a living. The agreement acknowledges that franchisees possess general skills and abilities and have other opportunities to use those skills. This statement is designed to demonstrate that the non-compete clause is reasonable and does not unduly restrict a franchisee's ability to support themselves after leaving the Buona system.

Specifically, the non-compete agreement restricts franchisees (and their shareholders, officers, directors, etc.) from having an ownership interest in, maintaining, operating, or being involved with a Competitive Business within a 10-mile radius of their former Buona location or any other Buona location. This restriction lasts for two years following the termination or expiration of the franchise agreement. However, owning less than 2% of a publicly-traded security is an exception to this restriction.

This clause is important for prospective franchisees to consider. While Buona states that the non-compete will not deprive them of their ability to earn a living, the restrictions could still limit their options. Franchisees should carefully evaluate the scope and duration of the non-compete and consider how it might affect their future career plans. It is advisable to consult with a legal professional to fully understand the implications of this clause before signing the franchise agreement.