Who is restricted by the non-compete agreement after the termination of an Expense Reduction Analysts franchise agreement?
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.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, several parties are restricted by the post-term non-compete agreement. Specifically, the agreement applies to the franchisee ('You'), their principals, owners, and guarantors. It also extends to any spouse or child of the age of eighteen (18) years or older of the franchisee, their principals, owners, or guarantors. These individuals are restricted from involvement with any business competing with Expense Reduction Analysts.
The restrictions apply for a period of 24 months after the expiration, non-renewal, transfer, or termination of the franchise agreement, regardless of the cause of termination. The restrictions prevent these individuals from directly or indirectly engaging in a competing business, whether for themselves or in conjunction with another entity.
The geographic scope of the 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 broad scope means that franchisees and related parties are significantly limited in their ability to engage in similar business activities after leaving the Expense Reduction Analysts system, potentially impacting their future career or business opportunities.