After the termination of the Expense Reduction Analysts agreement, for how many months is the non-compete period?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
-(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.
(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 Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees are subject to a post-term non-compete covenant for a period of 24 months. This restriction applies regardless of the reason for the agreement's expiration, non-renewal, transfer, or termination. The non-compete extends not only to the franchisee but also to their principals, owners, guarantors, and any spouse or child over the age of eighteen.
During this 24-month period, these individuals are prohibited from being involved, directly or indirectly, with any business that competes with Expense Reduction Analysts in granting franchises or licenses. This includes owning, maintaining, engaging in, or being employed by a competing business. The restriction also covers lending money to or having any interest in such a business.
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 broad geographic scope means that franchisees need to be aware of Expense Reduction Analysts' licensing activities to fully understand the extent of the non-compete. This restriction is in place to protect Expense Reduction Analysts' interests and prevent former franchisees from using the franchisor's confidential information and business model to compete against them.