Does the Buona franchise agreement state that the post-termination non-compete restriction will not deprive them of their personal goodwill?

According to Buona's 2025 Franchise Disclosure Document, the franchise agreement states that the post-termination non-compete restriction will not deprive the franchisee of their personal goodwill or ability to earn a living. This acknowledgment is part of the broader agreement where the franchisee recognizes they possess general skills and abilities and have other opportunities to use them. This clause aims to ensure that the non-compete agreement does not unduly restrict the franchisee's future employment or business prospects.

The non-compete agreement specifies that for two years following the termination or expiration of the franchise agreement, the franchisee (including its shareholders, officers, directors, members, managers, partners, and guarantors) cannot have an ownership interest in, maintain, operate, engage in, or be involved with a Competitive Business within a 10-mile radius of the former Buona location or any other existing Buona location. A Competitive Business is defined as one that offers similar products or services to Buona.

However, this restriction does not apply to the ownership of less than 2% of the outstanding shares of a publicly-traded security. The inclusion of the statement regarding personal goodwill suggests that Buona aims to create a non-compete agreement that is reasonable and enforceable, recognizing the franchisee's right to continue earning a living after the franchise relationship ends, while still protecting Buona's business interests and market.