Does the non-competition agreement apply if the Coffee News franchise is transferred?

According to the 2025 Coffee News Franchise Disclosure Document, the non-competition agreement applies to the franchisee even if the franchise is transferred or assigned. Specifically, during the term of the Franchise Agreement and for two years after the termination, expiration, transfer, or assignment of the agreement, the franchisee is restricted from engaging in competitive activities. This restriction applies not only to the franchisee as an individual or business entity but also extends to their family members, officers, directors, key personnel, employees, and stockholders.

This non-compete clause prevents these individuals and entities from directly or indirectly engaging in competitive businesses through various means such as corporations, partnerships, trusts, associations, joint ventures, or unincorporated entities. This broad scope ensures that the franchisee and related parties cannot use alternative business structures to circumvent the non-compete obligations.

For a prospective Coffee News franchisee, this means that upon transferring their franchise, they (and related parties) are still bound by the non-compete agreement for a period of two years. This could significantly limit their business opportunities in the same or similar industries within that timeframe. It is important for potential franchisees to fully understand the implications of this clause before entering into the Franchise Agreement, especially if they foresee a future transfer or assignment of their franchise.