What is the duration of the 'Restrictive Period' after the termination of the Burneys Sweets More franchise agreement?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
In partial consideration for Franchisor allowing Franchisee to license Franchisor's Marks and Confidential Information, Franchisee and each of the Franchisee's Owners covenant and agree that for a period of two (2) years after the termination, expiration, or non-renewal of this Agreement, regardless of the reason for such termination, expiration, or non-renewal ("Restrictive Period"), Franchisee and its Owners shall not, within the Restrictive Territory (as defined in Section 14(e) below) engage in any of the following:
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, the 'Restrictive Period' lasts for two years following the termination, expiration, or non-renewal of the Franchise Agreement. This restriction applies regardless of the reason for the termination, expiration, or non-renewal.
During this two-year period, a franchisee is restricted from certain activities within a defined 'Restrictive Territory'. These restrictions include involvement in competitive businesses, soliciting customers, and soliciting vendors. The 'Restrictive Territory' includes the location of the franchised business, the territory served by the franchisee, territories where Burneys Sweets More or its affiliates operate, territories of other Burneys Sweets More franchisees, and an area within a 10-mile radius of the franchised business and other Burneys Sweets More shops.
This non-compete clause is a standard practice in franchising to protect the franchisor's brand, customer relationships, and trade secrets. Prospective Burneys Sweets More franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area or industry after leaving the Burneys Sweets More system. Understanding the scope and duration of the restrictive period is crucial for future business planning.