What is the exception to the post-term covenant regarding ownership of publicly traded companies for a former Crisp & Green franchisee?

According to Crisp & Green's 2024 Franchise Disclosure Document, there is an exception to the non-compete agreement regarding ownership in publicly traded companies. Specifically, a former franchisee or their immediate family member is allowed to own up to five percent of the legal, beneficial, or voting interests in a company whose equity securities are publicly traded on a securities exchange.

This exception provides some flexibility for franchisees to invest in publicly traded companies, even if those companies might be considered competitors to Crisp & Green. The key restriction is the ownership limit of five percent, which is likely intended to prevent a former franchisee from exerting significant influence or control over a competing business while still adhering to the non-compete agreement.

This clause protects the franchisee's ability to diversify their investments without completely restricting them from participating in the stock market. However, it is important to note that exceeding the 5% ownership stake would likely be considered a breach of the franchise agreement and its non-compete terms. Franchisees should consult with legal counsel to ensure compliance if they are considering such investments.