In the Burneys Sweets More FDD, what constitutes the 'Restrictive Period' and how long does it last?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
(d) "Franchise Agreement" shall mean the franchise agreement between Franchisor and ("Franchisee") dated as amended or renewed from time to time.
(e) "Location" shall mean the accepted location of Franchisee's Franchised Business.
(f) "Restrictive Period" shall mean a period of two (2) years that begins the earlier of (i) the date of termination, expiration, or non-renewal of the Franchise Agreement, regardless of the reason for such termination, expiration, or non-renewal, or (ii) the date Associate's association with Franchisee or the Franchised Business ends for any reason, including but not limited to, divorce, separation, sale, termination, or transfer.
- (g) "Restrictive Territory" shall mean:
- i) At the Location of the Franchised Business; or
- ii) The Territory served by Franchisee as that Territory exists on the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location; or
- (g) "Restrictive Territory" shall mean:
iii) The territories in which Franchisor or its affiliates operate any BURNEY'S SWEETS & MORE businesses or locations as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
iv) The territories of any of Franchisor's BURNEY'S SWEETS & MORE franchisees as those territories exist as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including those locations; or
v) An area which is within a 10-mile radius of:
(1) The Location of the Franchised Business as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location, and
(2) The location of any other BURNEY'S SWEETS & MORE shops owned by Franchisor or its affiliates or franchisees as of the date of termination, expiration, non-renewal, or transfer of the Franchise Agreement, including the Location.
(h) "Term" shall mean the period between the Effective Date and the first date of the Restrictive Period.
(i) "Territory" shall have the meaning defined in the Franchise Agreement.
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- Confidential Information.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, the 'Restrictive Period' is defined as a duration of two years. This period begins on the earlier of two dates. The first is the date of termination, expiration, or non-renewal of the Franchise Agreement, regardless of the reason for the termination, expiration, or non-renewal. The second is the date an associate's involvement with the franchisee or the franchised business ends for any reason, including events like divorce, separation, sale, termination, or transfer.
During this Restrictive Period, a franchisee is limited in their ability to engage in certain competitive activities within a defined 'Restrictive Territory'. This 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. These restrictions are designed to protect Burneys Sweets More's market share and confidential information.
Specifically, the franchisee is prohibited from franchising, licensing, or owning an interest in any competitive business, or engaging in any competitive business as an officer, director, employee, consultant, manager, operator, or independent contractor where they could use or disclose confidential information. Additionally, the franchisee is restricted from soliciting or diverting customers or vendors of the Burneys Sweets More shop to a competitive business. These covenants are in place to protect the legitimate business interests of Burneys Sweets More and are considered fair and reasonable by the franchisor.