What is the duration of the post-term non-compete covenant for Expense Reduction Analysts franchisees?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
27.6 Post-Term Covenant
- (1) For a period of twenty-four (24) Months after the expiration and non-renewal, transfer or termination of this Agreement, regardless of the cause, neither You, Your principals, owners and Guarantors, nor any spouse or child of the age of eighteen (18) years or older of You, Your principals, owners or Guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation, be involved with any business competing in whole or in part with Franchisor granting franchises or licenses for Competing Businesses.
The geographic scope of this non-compete in this Section is any location where the Franchisor can demonstrate it has offered or sold licenses as of the date this Agreement is terminated or expires.
(2) For a period of twenty-four (24) Months after the expiration and non-renewal, transfer or termination of this Agreement, regardless of the cause, neither You, Your principals, owners and guarantors, nor any member of the immediate family of You, Your principals, owners or guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, partnership or corporation:
(a) Own, maintain, engage in, be employed as an officer, director, or principal of, lend money to, extend credit to or have any interest in or involvement with any other Competing Business:
(iv) at the Premises;
(v) within the Area; or
(vi) within a 50-mile radius of the perimeter of:
(A) the Area being granted hereunder; or
(B) any other Area granted by the Franchisor in connection with an ERA Business as of the date of expiration or termination of this Agreement; or
(b) Solicit business from customers of Yourformer ERA Business or contact any of Franchisor's suppliers or vendors for any competitive business purpose, nor directly solicit any of Franchisor's other employees, or the employees of Franchisor's affiliates or any other System Franchisees to discontinue employment.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, after the franchise agreement expires, is not renewed, is transferred, or is terminated, the franchisee is subject to a post-term non-compete covenant for a period of twenty-four (24) months. This restriction applies regardless of the reason for the termination or expiration of the agreement.
The non-compete extends not only to the franchisee but also to their principals, owners, guarantors, and any member of their immediate family. These individuals are prohibited from being directly or indirectly involved with any business that competes with Expense Reduction Analysts in granting franchises or licenses for competing businesses.
The geographic scope of this non-compete is any location where Expense Reduction Analysts can demonstrate it has offered or sold licenses as of the date the agreement is terminated or expires. This restriction also includes owning, maintaining, or being employed by a competing business at the franchise's premises, within the franchise's area, or within a 50-mile radius of the perimeter of the assigned area or any other area granted by Expense Reduction Analysts. Franchisees are also restricted from soliciting business from former Expense Reduction Analysts customers or contacting Expense Reduction Analysts' suppliers or vendors for any competitive business purpose, or soliciting Expense Reduction Analysts' employees or the employees of its affiliates or other franchisees to discontinue employment.