What section of the Coffee News franchise agreement discusses non-competition covenants during the term of the franchise?
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 the 2025 Coffee News Franchise Disclosure Document, Item 17 outlines important provisions of the franchise agreement, including non-competition covenants. Specifically, Section 8.5 of Exhibit A within the franchise agreement addresses non-competition covenants during the term of the franchise.
This section stipulates that franchisees are prohibited from involvement in any competing business within their state during the franchise term. This means that while operating a Coffee News franchise, a franchisee cannot own, operate, or be involved in any other business that directly competes with Coffee News within the state where their franchise is located.
Additionally, Section 8.5 also addresses non-competition covenants after the franchise is terminated or expires. It states that franchisees are prohibited from involvement in a competing business in their state for two years following termination. Therefore, it is important for prospective franchisees to carefully review Section 8.5 and Exhibit A of the franchise agreement to fully understand the scope and limitations of these non-competition covenants, both during and after the franchise term.