Where in the Carls Development Agreement can I find information regarding non-competition covenants?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement (FA) and Development Agreement (DA) | Disclosure Document Item | |
|---|---|---|---|
| w. | Non-competition covenants | FA: Section 17 DA: Section 12 | Item 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 40–41)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations under both the Franchise Agreement and the Development Agreement. Specifically, it indicates where to find more detailed information about these obligations within the agreements and other items of the disclosure document.
For non-competition covenants, the table shows that the relevant section in the Franchise Agreement is Section 17, while in the Development Agreement, it is Section 12. Further details regarding non-competition covenants are also available in Item 17 of the disclosure document.
Prospective Carls franchisees should carefully review Section 12 of the Development Agreement and Section 17 of the Franchise Agreement, along with Item 17 of the FDD, to fully understand the terms and conditions of the non-competition covenants. This includes the scope, duration, and geographic limitations of these covenants, as well as any potential exceptions or waivers. Understanding these restrictions is crucial for franchisees to avoid any potential conflicts or legal issues during and after the franchise term.