After the Carls franchise is terminated or expires, what is the geographic scope of the non-competition covenant?

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|    | Provision                                                                       | Section In Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----|---------------------------------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| l. | Our approval of transfer by you | Sections 18.B & 8.G. | Unless otherwise expressly permitted, you must obtain our prior written consent for any Transfer (as defined in the Franchise Agreement). |
|  | m. Conditions for our approval of transfer | Sections 18.BC. | Conditions include: transferee qualified; reasonable sales price; payment of amounts due; no default under any agreement with CJR or its affiliates; no default beyond the applicable cure period under any real estate or equipment lease or financing instrument relating to the Franchised Restaurant or agreement with any vendor or supplier to the Franchised Restaurant; signed release; transferee must complete training; compliance with all obligations to us or our affiliates under transferee's and each of transferee's affiliates development and franchise agreements with us or our affiliates; remodeling, maintenance and facility upgrades to modernize Franchised Restaurant to current image; transfer fee paid; and agreements signed. |
|  | n. Our right of first refusal to acquire your business | Section 18.J. | We or our designee can match any offer for your business. |
|  | o. Our option to purchase your business | Section 23 | We can purchase some or all of your assets upon expiration or earlier termination of the Franchise Agreement at a price agreed upon or set by appraisers. |
|  | p. Your death or disability | Section 18.G.(1)(b) | Transfer to your spouse, children, parent, sibling or member of your Continuity Group is allowed. |
|  | q. Non-competition covenants during the term of the franchise | Section 20.C. | Except with our consent - no diversion of any business or customer to any competitor; no interest in any restaurant business or sale of real property to a restaurant business (i) whose sales of Designated Entrée Items during any daypart are reasonably likely to account collectively for 20% or more of the restaurant's sales of all entrée items during that daypart, (ii) that features or promotes any Designated Entrée Item in its advertising, or (iii) that operates in a quick-service format (with or without table service). "Designated Entrée Items" means any hamburger sandwich, chicken sandwich, breakfast sandwich and any other entrée item of a type designated by us as part of the System at any time during the term of the Franchise Agreement. |
| r. | Non-competition covenants after the franchise is terminated or expires | Section 20.C.; | No activity as described in paragraph q. above for 2 years within a 2- mile radius of the Franchised Location or within a 2-mile radius of any then-existing Carl's Jr. Restaurant. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 61–66)

After the Carls franchise is terminated or expires, what is the geographic scope of the non-competition covenant?

Answer from 2024 FDD Document

What This Means (2024 FDD)

	Provision	Section In Franchise Agreement	Summary
l.	Our approval of transfer by you	Sections 18.B & 8.G.	Unless otherwise expressly permitted, you must obtain our prior written consent for any Transfer (as defined in the Franchise Agreement).
	m. Conditions for our approval of transfer	Sections 18.BC.	Conditions include: transferee qualified; reasonable sales price; payment of amounts due; no default under any agreement with CJR or its affiliates; no default beyond the applicable cure period under any real estate or equipment lease or financing instrument relating to the Franchised Restaurant or agreement with any vendor or supplier to the Franchised Restaurant; signed release; transferee must complete training; compliance with all obligations to us or our affiliates under transferee's and each of transferee's affiliates development and franchise agreements with us or our affiliates; remodeling, maintenance and facility upgrades to modernize Franchised Restaurant to current image; transfer fee paid; and agreements signed.
	n. Our right of first refusal to acquire your business	Section 18.J.	We or our designee can match any offer for your business.
	o. Our option to purchase your business	Section 23	We can purchase some or all of your assets upon expiration or earlier termination of the Franchise Agreement at a price agreed upon or set by appraisers.
	p. Your death or disability	Section 18.G.(1)(b)	Transfer to your spouse, children, parent, sibling or member of your Continuity Group is allowed.
	q. Non-competition covenants during the term of the franchise	Section 20.C.	Except with our consent - no diversion of any business or customer to any competitor; no interest in any restaurant business or sale of real property to a restaurant business (i) whose sales of Designated Entrée Items during any daypart are reasonably likely to account collectively for 20% or more of the restaurant's sales of all entrée items during that daypart, (ii) that features or promotes any Designated Entrée Item in its advertising, or (iii) that operates in a quick-service format (with or without table service). "Designated Entrée Items" means any hamburger sandwich, chicken sandwich, breakfast sandwich and any other entrée item of a type designated by us as part of the System at any time during the term of the Franchise Agreement.
r.	Non-competition covenants after the franchise is terminated or expires	Section 20.C.;	No activity as described in paragraph q. above for 2 years within a 2- mile radius of the Franchised Location or within a 2-mile radius of any then-existing Carl's Jr. Restaurant.