During the term of the Burros Fries franchise, what are the non-competition covenants for the franchisee?

According to the 2024 Burros Fries Franchise Disclosure Document, franchisees are subject to non-competition covenants during the term of the franchise agreement. Specifically, franchisees cannot be involved in any competitive business anywhere in the U.S., with the exception of any existing businesses they already own. This restriction is detailed in Section 19.C of the Franchise Agreement.

This means that while operating a Burros Fries franchise, a franchisee is prohibited from owning, operating, or having any financial interest in any other business that competes with Burros Fries anywhere in the United States. The only exception to this is if the franchisee already owns a competing business prior to signing the Burros Fries Franchise Agreement.

This non-compete clause is fairly standard in the franchise industry, as franchisors want to protect their brand and market share. Prospective Burros Fries franchisees should carefully consider this restriction and ensure they are not in violation of it before signing the Franchise Agreement. It is also important to understand the definition of 'competitive business' as defined in the Franchise Agreement to fully grasp the scope of this restriction.