Where are the non-disclosure and non-competition covenants for Devon Creek found in the agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
18.4 Survival. The rights and obligations of the parties contained in this Article 18 shall survive the expiration or sooner termination of this Agreement.
19. NON-DISCLOSURE AND NON-COMPETITION COVENANTS
19.1 Operations Manual.
- 19.1.1 Franchisor has provided to Franchisee, on loan, a current copy of the Manual. The Manual may be in hard copy or made available to Franchisee in digital, electronic or computerized form or in some other form now existing or hereafter developed that would allow Franchisee to view the contents thereof. If the Manual (or any changes thereto) are provided in a form other than physical copy, Franchisee shall pay any and all costs to retrieve, review, use or access the Manual. To protect the reputation and goodwill of Franchisor and to maintai
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the non-disclosure and non-competition covenants are detailed in Article 19 of the franchise agreement. Specifically, Article 19.5.1 outlines the restrictions during the term of the agreement, preventing franchisees and principals from diverting business, engaging in similar lawn care services, or acting in a way that harms the goodwill associated with the Devon Creek brand. Article 19.5.2 further extends these restrictions for 24 months after the agreement's termination or transfer.
The non-disclosure and non-competition covenants specify that franchisees and principals cannot divert business or participate in similar lawn care businesses within 25 miles of their territory or 50 miles of any Devon Creek office location after the agreement ends. These restrictions aim to protect Devon Creek's market and confidential information.
The FDD also mentions a separate Confidentiality and Non-Compete Agreement, as well as Exhibit F, which is an acknowledgement statement related to the truthfulness of statements made as an inducement for Devon Creek to enter into a franchise agreement. This agreement includes clauses about maintaining confidentiality and not competing, indicating that these protections are critical to the franchise relationship. The franchisor is a third-party beneficiary of the Confidentiality and Non-Compete Agreement and may take action to enforce the covenantor's obligations.