In the City Wide Non-Compete Agreement, what does the term 'Franchised Business' refer to, in addition to the definition in the Franchise Agreement?

According to City Wide's 2025 Franchise Disclosure Document, the Non-Compete Agreement further defines 'Franchised Business.' While the term is initially defined in the Franchise Agreement, the Non-Compete Agreement specifies that it also refers to the use of City Wide's System and Marks at a particular location. This location is the franchisee's designated territory, as outlined in Attachment B to the Franchise Agreement.

This means that the restrictions on competition apply specifically to the territory granted to the franchisee. The franchisee agrees not to divert business or customers from the 'Franchised Business' to any competitor, nor engage in any activity that could harm the goodwill associated with City Wide's Marks and System. This restriction covers both direct and indirect actions.

The franchisee is also prohibited from owning, maintaining, or having a material interest in any competitive business that offers similar services or products targeted at a similar retail market. This restriction applies during the term of the Non-Compete Agreement, safeguarding City Wide's market position and the integrity of its franchise system within the designated territory.