What is the duration of the non-competition covenant after termination or expiration of a Caring Senior Service franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
15.2 Non-Competition Following Termination, Expiration or Transfer
In the event of the expiration, non-renewal or termination of this Agreement for any reason whatsoever, or in the event this Agreement is transferred pursuant to Section 16.2, 16.4 or 16.7 hereof, you (or, in the case of a Transfer among the individuals comprising you pursuant to Section 16.4, the Transferor individual(s)) shall not, without our prior written consent, at any time during the period of two (2) years from the date of such expiration or termination or transfer, either individually or in conjunction with any person, firm, partnership or corporation or other third party as principal, agent, shareholder, director, officer, employee, consultant, guarantor or in any other manner whatsoever, directly or indirectly carry on, be engaged in or be concerned with or interested in, financially or otherwise, or advise in the operation of any Competitive Business within the Protected Territory of the Business and a fifteen (15) mile area surrounding the Protected Territory of the Business or within fifteen (15) miles of the protected territory of any other Business as of the date of termination.
15.3 Interference with Employment Relations
During the term of this Agreement and for a period of two (2) years after the termination or expiration of this Agreement for any reason whatsoever, or the transfer of this Agreement pursuant to Section 16.2, 16.4 or 16.7 hereof, you (or, in the case of a Transfer among the individuals comprising you pursuant to Section 16.4, the Transferor individual(s)) shall not solicit for employment any person who is, at the time of such solicitation, employed by us or by any other franchisee of ours, nor shall you directly or indirectly induce any such person to leave his or her employment.
15.4 Amendment of Restrictive Covenants
You acknowledge that the provisions of this Article 15 have been inserted for our sole benefit and that we shall have the right, from time to time during the term of this Agreement in our sole discretion, to waive in whole or in part or otherwise reduce the scope of any covenant set forth in this Article 15 or any portion thereof without your consent, effective upon our giving notice thereof to you.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 39–45)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for a period of two years following the expiration, non-renewal, or termination of the Franchise Agreement. This restriction also applies if the agreement is transferred under specific sections outlined in the document.
During this two-year period, the franchisee is prohibited from engaging in or being involved with any Competitive Business, either directly or indirectly. This includes acting as a principal, agent, shareholder, director, officer, employee, consultant, or guarantor. The restriction applies within the franchisee's Protected Territory, as well as a 15-mile radius surrounding both the franchisee's Protected Territory and the protected territories of any other Caring Senior Service businesses as of the termination date.
Additionally, during the term of the agreement and for two years after termination, expiration, or transfer, franchisees are prohibited from soliciting for employment any person employed by Caring Senior Service or any of its other franchisees. They also cannot induce any such person to leave their employment. However, Caring Senior Service retains the right to amend or waive these restrictive covenants at its discretion during the term of the agreement, without requiring the franchisee's consent.