During the term of the Expense Reduction Analysts franchise, who is subject to the non-competition covenants?

According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, several parties are subject to non-competition covenants during the term of the franchise agreement. These parties include the franchisee ('you'), their principals, guarantors, owners, and Practice Model Consultants. Additionally, the non-competition covenants extend to any immediate family member of the franchisee, their principals, guarantors, and owners.

These covenants restrict the listed individuals and entities from engaging in activities that could harm Expense Reduction Analysts' business interests. Specifically, they are prohibited from owning, operating, or being involved with a Competing Business, employing or seeking to employ employees of Expense Reduction Analysts, its affiliates, or other franchisees, and diverting or attempting to divert prospective customers to a Competing Business.

For a prospective Expense Reduction Analysts franchisee, this means that not only are they personally restricted from engaging in competitive activities, but also their business partners, financial backers, consultants, and immediate family members. This broad scope is designed to protect Expense Reduction Analysts' market position and proprietary information. Franchisees should carefully consider these restrictions and ensure that all relevant parties are aware of and willing to comply with them before entering into a franchise agreement.

It is important to note that the FDD also outlines non-competition covenants that apply after the franchise is terminated or expires, which have different terms and restrictions. Franchisees should review both sets of covenants to fully understand their obligations.