What are the non-competition covenants after the Chocolate Fish Coffee franchise is terminated or expires?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are subject to certain non-competition covenants after the franchise is terminated or expires. For a period of two years after the termination or expiration of the franchise agreement, the franchisee, any owner of the business, or any spouse of an owner is restricted from having ownership interest in, lending money or providing financial assistance to, or providing services to a competing business.

Additionally, neither the franchisee, any owner of the business, nor any spouse of an owner may be employed by a competitor located within five miles of the former Chocolate Fish Coffee territory or the territory of any other Chocolate Fish Coffee business operating on the date of termination.

These restrictions are fairly standard in the franchise industry to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to compete against the system after they leave. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities before investing in a Chocolate Fish Coffee franchise.