After termination or expiration of a Chocolate Bash franchise, for how long are non-competition covenants in effect?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| r. Non-competition | For two years, no ownership or employment by | |
| covenants after the | ||
| franchise is terminated or | ||
| expires FA: § 13.2 | ||
| MUDA: none | a competitor located within five miles of your former territory or the territory of any other Chocolate Bash business operating on the date of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, non-competition covenants apply for a period of two years after the franchise is terminated or expires. During this time, the franchisee, any owner of the business, or any spouse of an owner is restricted from having ownership interest in, or being engaged or employed by, a competitor.
The restriction applies to competitors located within five miles of the former Chocolate Bash territory or the territory of any other Chocolate Bash business operating on the date of termination. This means that after leaving the Chocolate Bash system, franchisees must avoid involvement with competing businesses within a defined geographic area to comply with the non-compete agreement.
This non-compete clause is a standard provision in franchise agreements to protect the brand and other franchisees from unfair competition by former franchisees who may have gained knowledge and experience while operating a Chocolate Bash location. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after the franchise term ends.