Does the Confidentiality and Non-Compete Agreement for Burros Fries outline any specific exceptions to the non-solicitation provisions?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
trolled by or under common control with Franchisee. The initial Franchisee's Principals shall be listed on Schedule 7 of this Agreement.
C. Franchisee Will Not Compete Against Franchisor
Franchisee specifically acknowledges that, pursuant to this Agreement, Franchisee will receive valuable specialized training, our Confidential Information and our System.
Franchisee agrees that, except as otherwise approved in writing by us, Franchisee shall not, during the term of this Agreement and for a period of two (2) years from the date of (i) a transfer permitted under this Agreement; (ii) the expiration or termination of this Agreement (regardless of the cause for termination); or (iii) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to the enforcement of this Section 19.C, either directly or indirectly for itself, or through, on behalf of, or in conjunction with, any person, persons, or legal entity, own, maintain, operate, engage in, be employed by, or have any interest in any business using any aspect of the System, the overall Burros & Fries business concept, with similar Products and/or Services within a ten (10) mile radius of the Accepted Location designated hereunder, or within a ten (10) mile radius of any other System franchise or company-owned business in existence or planned as of the time of termination or expiration of this Agreement as identified in the Franchise Disclosure Document in effect as of the date of expiration or termination of this Agreement.
The unenforceability of all or part of this covenant not to compete in any jurisdiction will not affect the enforceability of this covenant not to compete in any other jurisdictions, or the enforceability of the remainder of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the provided excerpts do not contain specific details about exceptions to non-solicitation provisions within the Confidentiality and Non-Compete Agreement for Burros Fries. The document does outline general restrictions on competition and confidentiality.
Specifically, the FDD mentions that franchisees will receive valuable specialized training, confidential information, and access to the Burros Fries system. Franchisees are restricted from engaging in any similar business within a ten-mile radius of their location or any other Burros Fries franchise for two years after termination or transfer of the agreement. The franchisee also agrees not to use or divulge any confidential information during the term of the agreement and for a period of five years following the expiration or termination of the agreement.
To fully understand any exceptions to the non-solicitation provisions, a prospective Burros Fries franchisee should carefully review the complete Franchise Agreement and related documents. It would be prudent to seek clarification from the franchisor regarding specific scenarios or carve-outs that may exist within the non-solicitation clauses. Consulting with a franchise attorney is also recommended to ensure a comprehensive understanding of these obligations and rights.