What non-competition covenants apply to a Christian Brothers Automotive franchisee after the franchise is terminated or expires?

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Accepted Answer

ubstantially all of its revenue from the sale of Services or other products and

services similar to the Services or those offered in the Franchised Business or a

franchisee of Franchisor under the System.

16.03 After the Agreement and After a Transfer. Franchisee covenants that, except as otherwise

approved in writing by Franchisor, for a continuous uninterrupted period of three (3) years

commencing upon the date of: (i) a transfer permitted under Section 13 of this Agreement;

(ii) expiration or termination of this Agreement for any reason; or (iii) a final order of a

duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after

all appeals have been taken) with respect to any of the foregoing or with respect to

enforcement of this Section 16.03:

(a) Franchisee shall not directly or indirectly, for itself, or through, on behalf of, or in

conjunction with any person, partnership, joint venture, organization or legal entity,

own, maintain, operate, engage in, be employed by, provide assistance to, or have

any interest in (as owner or otherwise) any Competitive Business that is, or is

intended to be, located (i) at the premises of the Franchised Business, (ii) within a

radius of ten (10) miles of the Franchised Business, or (iii) within a radius of ten

(10) miles of any other franchisee of Franchisor or any business owned or operated

by Franchisor.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–62)