After the Deck Medic franchise is terminated or expires, for how long are non-competition covenants in effect?

According to Deck Medic's 2024 Franchise Disclosure Document, if the franchise is terminated or expires, the non-competition covenants are in effect for 24 months. During this period, the franchisee cannot have any involvement, ownership, or interest in any competing business within their Operating Territory, a 25-mile radius of their Operating Territory, or the Operating Territory of any other Deck Medic business. Additionally, the franchisee must continue to comply with confidentiality, non-disclosure, and non-solicitation covenants.

This means that upon termination or expiration of the franchise agreement, a former Deck Medic franchisee is restricted from engaging in any competing deck cleaning or restoration business within a defined geographic area for two years. This restriction aims to protect Deck Medic's market share and confidential business information. The non-solicitation clause would prevent the franchisee from actively seeking out Deck Medic's existing customers.

These types of non-compete clauses are common in franchising to protect the brand and prevent franchisees from using the franchisor's proprietary information and systems to compete against the franchise after leaving the system. Prospective franchisees should carefully consider the scope and duration of these restrictions, as they can significantly impact their ability to start a similar business in the future. It is also important to note that these covenants are subject to state law, which may affect their enforceability.

The FDD also states that Deck Medic can unilaterally reduce the scope of a restrictive covenant at their discretion. This means that Deck Medic retains the right to lessen the restrictions on a franchisee, but the franchisee does not have the power to negotiate for a reduction in the non-compete terms.