For how long after termination is a Coffee News franchisee prohibited from involvement in a competing business in their state?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| q. Non-competition covenants during the term of the franchise. | Section 8.5, Exhibit A | No involvement in competing business in your state. |
| r. Non-competition covenants after the franchise is terminated or expires. | Section 8.5, Exhibit A | No involvement in competing business in your state for 2 years following termination. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in any competing business within their state for a period of two years following the termination or expiration of their franchise agreement. This non-compete clause is detailed in Section 8.5 of Exhibit A of the franchise agreement.
This restriction means that after a Coffee News franchise ends, the former franchisee cannot operate or be involved in a similar business that competes with Coffee News within the same state for two years. This is designed to protect Coffee News's market share and confidential business information.
For a prospective franchisee, this non-compete clause is an important consideration. It limits their business options in the event they decide to leave the Coffee News system. It is fairly standard in the franchise industry to have a non-compete agreement, but the length and geographic scope can vary. Two years is a fairly typical duration for such a restriction. A prospective franchisee should carefully evaluate whether this restriction aligns with their long-term career and business goals.