Are there non-competition covenants for Expense Reduction Analysts franchisees during the term of the franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| q. Non-competition covenants | 11.13 | Neither you, your principals, guarantors, owners | |
| during the term of the | or Practice Model Consultants, nor any | ||
| franchise | immediate family member of you, your | ||
| principals, guarantors, owners or Practice Model | |||
| Consultants, may: (i) own, operate, or otherwise | |||
| be involved with, Competing Business (as | |||
| defined in the Franchise Agreement); (ii) employ | |||
| or seek to employ any of employees or us, our | |||
| affiliates or any other System franchisee or | |||
| induce such persons to leave their employment; | |||
| or (iii) divert, or attempt to divert, any | |||
| prospective customer to a Competing Business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 43–46)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, there are non-competition covenants in place during the term of the franchise agreement. Specifically, neither the franchisee, their principals, guarantors, owners, or Practice Model Consultants, nor any immediate family member, can own, operate, or be involved with a Competing Business as defined in the Franchise Agreement.
Additionally, these parties are prohibited from employing or seeking to employ any employees of Expense Reduction Analysts, its affiliates, or any other System franchisee. They are also barred from inducing such persons to leave their employment. Furthermore, they cannot divert or attempt to divert any prospective customer to a Competing Business.
These restrictions are designed to protect Expense Reduction Analysts's business model, customer relationships, and employee base from direct competition during the time a franchisee is actively operating under the Expense Reduction Analysts brand. Prospective franchisees should carefully review Section 11.13 of the Franchise Agreement to fully understand the scope and limitations of these non-competition covenants.