What existing businesses are exempt from the non-competition covenants during the term of the Burros Fries Franchise Agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the Franchise. | FA – Section 19.C | FA – No involvement in any competitive business anywhere in the U.S. other than existing business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 46–49)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the non-competition covenant during the term of the franchise agreement does not apply to any existing businesses the franchisee is already involved with. This means that a franchisee can continue to operate a business that might otherwise be considered competitive with Burros Fries, as long as that business existed before the franchise agreement was signed.
This exemption from the non-compete agreement applies only to businesses that are already in operation when the Burros Fries franchise agreement takes effect. Any new competitive business ventures started during the term of the Burros Fries franchise would likely be a violation of the agreement.
This provision offers some flexibility for franchisees who may have pre-existing business interests. However, it is crucial for prospective franchisees to fully disclose any existing business ventures to Burros Fries before signing the franchise agreement to ensure there is a clear understanding and avoid potential conflicts down the line.