What is the standard radius restriction for a Competitive Business after termination of a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree: (1) to return immediately to Franchisor or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access, during my employment, association, service or ownership participation; (2) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with customers of Restaurants for any purpose whatsoever; and (3) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or rendering services or giving advice to: (a) any Competitive Business operating at the Premises or within a fifteen (15)-mile radius of the Premises; (b) any Competitive Business operating within a radius of fifteen (15) miles of any Restaurant in operation or under construction on the effective date of termination or expiration of my employment/service/association/ownership participation; or (c) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business. In the event the Premises is located in a metropolitan area having a population of more than 100,000 persons within a ten (10)-mile radius of the Premises, the foregoing fifteen (15)-mile radius restriction will be limited to a radius of ten (10) miles from any Restaurant (including the one formerly operated under this Agreement). I acknowledge and understand that the provisions of this Agreement, including my representations, covenants, and warranties (as applicable) given hereunder, are necessary and integral to this Agreement and to Franchisor's and Franchisee's interests under the Franchise Agreement, and are intended to:
(i) preclude not only direct competition, but also all forms of indirect competition, such as consultation for Competitive Businesses, service as an independent contractor for Competitive
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, after the termination of a franchise, franchisees are restricted from involvement with a Competitive Business for a period of two years. This restriction applies to owning a legal or beneficial interest in, or providing services or advice to, a Competitive Business.
The standard radius for this restriction is fifteen miles from the former Crisp & Green location or any other Crisp & Green restaurant in operation or under construction. However, if the restaurant is located in a metropolitan area with a population exceeding 100,000 within a ten-mile radius of the Premises, the restriction is reduced to ten miles from any Crisp & Green restaurant.
This non-compete agreement also extends to preventing any contact with customers of Crisp & Green restaurants for any purpose indefinitely after termination. It also applies not only to direct competition but also to indirect competition, such as consulting for Competitive Businesses or providing any assistance to a competitor. The restrictions also apply to the franchisee's Immediate Family, which includes a spouse, domestic partner, parents, children, or siblings.