Where can I find the covenant not to compete details in the Clean Your Dirty Face franchise agreement?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
15.F. COVENANT NOT TO COMPETE.
Upon termination or expiration of this Agreement, you and your owners agree that, for two (2) years beginning on the effective date of termination or expiration, neither you nor any of your owners (or their immediate family members) will have any direct or indirect interest as an owner (whether of record, beneficially, or otherwise), investor, partner, director, officer, employee, independent contractor, consultant, lessor, representative, or agent in any Competitive Business located or operating at the Premises, or within a ten (10) mile radius of your Premises.
If any person restricted by this Section 15.F fails to comply with these obligations as of the date of termination or expiration, the two (2) year restricted period for that person will commence on the date the person begins to comply with this Section 15.F, which may be the date a court order is entered enforcing this provision.
You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting these skills. Consequently, our enforcing the covenants made in this Section 15.F will not deprive you of your personal goodwill or ability to earn a living.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, details regarding the covenant not to compete can be found in Section 15.F of the franchise agreement. The franchise agreement is included as Exhibit B to the disclosure document.
Section 15.F states that upon termination or expiration of the agreement, the franchisee and their owners are restricted from having any direct or indirect interest in a Competitive Business. This restriction applies for two years, beginning on the effective date of termination or expiration. The restriction applies to businesses located or operating at the premises or within a ten-mile radius of the premises.
The agreement clarifies that the franchisee's skills are general and that enforcing the covenant will not deprive them of their ability to earn a living. If a restricted person fails to comply with these obligations, the two-year restricted period will commence on the date they begin to comply with Section 15.F, potentially starting from the date a court order is issued to enforce the provision. This clause ensures Clean Your Dirty Face can protect its market and proprietary information after a franchise agreement ends.