What is the duration of the post-term non-compete restriction for Cinch I.T. franchisees?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 You covenant that, except as otherwise approved in writing by Us, You shall not, for a continuous uninterrupted period commencing upon the expiration or termination of this Agreement, regardless of the cause for termination, and continuing for two (2) years thereafter, either directly or indirectly, for Yourself or through, on behalf of or in conjunction with any person, persons, partnership or corporation, own, maintain, engage in, be employed by, advise, assist, invest in, franchise, make loans to, or have any interest in any business which is the same as or substantially similar to a CINCH I.T. franchised business and which is located within a radius of twenty-five (25) miles of each Designated Territory described in the Development Area hereunder or within twenty-five (25) miles of the location of any Franchisor-owned, franchisee-owned or affiliate-owned CINCH I.T.
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Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a franchisee is subject to a post-term non-compete agreement for a period of two years. This restriction begins immediately after the expiration or termination of the Franchise Agreement, regardless of the reason for termination.
During this two-year period, the franchisee is prohibited from engaging in any business that is the same as or substantially similar to a Cinch I.T. franchised business. This includes owning, maintaining, engaging in, being employed by, advising, assisting, investing in, franchising, making loans to, or having any interest in such a business.
The geographic scope of this non-compete agreement extends to a 25-mile radius around each Designated Territory within the Development Area. It also applies within 25 miles of any Cinch I.T. business owned by the franchisor, another franchisee, or an affiliate. This means that after leaving the Cinch I.T. system, a former franchisee cannot operate a competing business within these specified areas for the two-year duration.