After the Deck Medic franchise is terminated or expires, what geographic areas are covered by the non-competition covenants?
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, franchisees are subject to non-competition covenants for 24 months. These covenants restrict involvement, ownership, or interest in any competing business within specific geographic areas.
The restricted areas include the franchisee's Operating Territory, a 25-mile radius around their Operating Territory, and the Operating Territory of any other Deck Medic business. Additionally, franchisees must comply with confidentiality, non-disclosure, and non-solicitation covenants during this period.
This means that a former Deck Medic franchisee cannot operate a competing deck repair or restoration business within their original territory, a 25-mile buffer zone around it, or in any area where another Deck Medic franchise operates. These restrictions are in place to protect Deck Medic's market share and confidential business information.