What is considered a 'Competitive Business' to a Fast Fix Jewelry And Watch Repairs franchise?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) For purposes of this Agreement, the term "Competitive Business" means (i) any retail business offering any of the following goods or services: jewelry or watch repairs, jewelry or watch sales, ring sizing, chain repair and replacement, remounting, engraving, eyeglass frame repair, watch and electronic device repair, and battery replacement as well as custom jewelry design and select gift, jewelry and watch retail product opportunities or any other goods or services of Franchisees that are then authorized for Franchisor's System, or (ii) any business granting franchises or licenses to others to operate the type of business specified in subparagraph.
Nevertheless, involvement in a Competitive Business does not include ownership of shares of a class of securities listed on a stock exchange or traded on the over-the-counter market that represent less than 5% of the number of shares of that class of securities issued and outstanding.
Source: Item 22 — CONTRACTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined in the context of the non-competition agreement. This definition is important because it restricts the activities a franchisee or their employees can engage in during and after their association with the franchise to protect Fast Fix Jewelry And Watch Repairs's market position.
A 'Competitive Business' includes any retail business that offers jewelry or watch repairs, jewelry or watch sales, ring sizing, chain repair and replacement, remounting, engraving, eyeglass frame repair, watch and electronic device repair, and battery replacement. It also extends to businesses involved in custom jewelry design and the retail of select gifts, jewelry, and watches, especially if these goods or services are authorized within the Fast Fix Jewelry And Watch Repairs system. This broad definition ensures that franchisees cannot operate similar businesses that might directly compete with their Fast Fix Jewelry And Watch Repairs franchise.
Furthermore, the definition encompasses any business that grants franchises or licenses to others for operating businesses of the type described above. This prevents a franchisee from circumventing the non-competition agreement by becoming involved in a competing franchise system. However, the document specifies an exception: owning less than 5% of the shares of a publicly traded company is not considered involvement in a Competitive Business. This allows for minor investments in publicly held companies without violating the agreement.