Within what radius of an Expense Reduction Analysts franchise location is competition prohibited after termination?
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.
(3) It is the parties' intent that the provisions of this Section 28.6 be judicially enforced to the fullest extent permissible under applicable law.
Accordingly, the parties agree that any reduction in scope or modification of any part of the non-competition provisions contained herein shall not render any other part unenforceable.
In the event of the actual or threatened breach of this Section 28.6 by You, any of Your principals, or any member of the immediate family of You or Your principals, the Franchisor shall be entitled to an injunction restraining such person from any such actual or threatened breach.
You acknowledge that the covenants contained herein are necessary to protect the goodwill of the ERA Business, other ERA System Franchisees, and the ERA System.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees are restricted from engaging in any competing business within a specific geographic scope for 24 months after the termination, expiration, or non-renewal of the franchise agreement. This restriction applies to the franchisee, their principals, owners, guarantors, and immediate family members.
The non-compete extends to three specific locations: the premises of the former Expense Reduction Analysts franchise, the defined area granted to the franchisee, and within a 50-mile radius of the perimeter of both the franchisee's granted area and any other area granted by Expense Reduction Analysts to another franchisee as of the termination date. This means a franchisee cannot own, maintain, be employed by, lend money to, or have any involvement with a competing business within these areas.
In addition to the geographic restrictions, franchisees are also prohibited from soliciting business from former Expense Reduction Analysts customers or contacting the franchisor's suppliers or vendors for competitive purposes. They are also barred from directly soliciting Expense Reduction Analysts' other employees, or the employees of its affiliates or other franchisees, to discontinue their employment.
The FDD states that these non-compete provisions are intended to be enforced to the fullest extent permissible under law to protect the goodwill of the Expense Reduction Analysts business, other franchisees, and the overall Expense Reduction Analysts system. The document also mentions that Expense Reduction Analysts is entitled to seek an injunction to prevent any actual or threatened breach of these non-compete terms.