Following termination of a Deck Medic franchise, what is the geographic scope of the non-compete restriction?

According to Deck Medic's 2024 Franchise Disclosure Document, the geographic scope of the post-termination non-compete is generally the franchisee's Operating Territory. However, if a court finds this too broad, the restricted territory will then include the franchisee's Operating Territory plus a 25-mile radius around it.

This means that after the franchise agreement ends, a former Deck Medic franchisee is restricted from operating a similar business within their original territory. This restriction aims to protect Deck Medic's market share and brand reputation within that area. The alternative definition, including the 25-mile radius, provides a more specific and potentially enforceable boundary for the non-compete agreement.

It is important for prospective franchisees to understand the implications of this non-compete clause. They should consider the size and location of their Operating Territory and the potential impact of the restriction on their future business opportunities should they leave the Deck Medic system. Franchisees in North Dakota should note the amendment stating that covenants not to compete are generally considered unenforceable in the state.