Following termination or expiration of a Deck Medic franchise, what activities related to competing businesses are prohibited?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | 6 | No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17 | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Operating Territory; a 25 mile radius of your Operating Territory; the Operating Territory of any other Deck Medic Business; and you must comply with confidentiality, non-disclosure and non-solicitation covenants. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, after the franchise is terminated or expires, the franchisee is restricted from certain competitive activities. Specifically, for a period of 24 months, the franchisee cannot have any involvement, ownership, or interest in any competing business within their Operating Territory. This restriction also extends to a 25-mile radius of their Operating Territory and includes the Operating Territory of any other Deck Medic business.
In addition to these geographical and temporal restrictions, the franchisee must continue to comply with confidentiality, non-disclosure, and non-solicitation covenants. This means that even after the franchise agreement ends, the franchisee is still obligated to protect Deck Medic's proprietary information and refrain from soliciting its customers or employees.
These post-termination restrictions are common in franchising to protect the brand and prevent former franchisees from using the franchisor's knowledge and resources to unfairly compete. Prospective Deck Medic franchisees should carefully consider the scope and duration of these restrictions to understand their obligations if they decide to leave the system.