Does the Fitstop franchise agreement specify that the post-term non-compete period is 'uninterrupted'?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.3 Post-Term Covenant(s) Against Competition and Other Restrictive Covenants. In consideration of the aforementioned valuable consideration, for a continuous, uninterrupted period for 2 calendar years after the Term, commencing upon expiration, termination, assignment, or transfer of this Agreement, regardless of the cause, you agree to the following:
18.3.1 Without our prior written consent, you shall not disclose the Competitive Information to any person nor shall you reprint or reproduce the Competitive Information in whole or in part;
18.3.2 Without our prior written consent, you shall not employ or seek to employ any person who is at the time employed by us, any of our subsidiaries, or any person who is at the time operating a Franchise or otherwise induce, directly or indirectly, such person to leave such employment.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the post-term covenant against competition specifies a continuous, uninterrupted period. Specifically, for two calendar years after the term's expiration, termination, assignment, or transfer, the franchisee is subject to certain restrictions. These restrictions apply regardless of the cause of termination.
During this two-year period, the franchisee is prohibited from disclosing Competitive Information to any person, or reprinting/reproducing it without Fitstop's prior written consent. Additionally, the franchisee cannot employ or seek to employ anyone currently employed by Fitstop, its subsidiaries, or other Fitstop franchisees, nor can they induce such individuals to leave their employment without prior written consent.
This uninterrupted non-compete clause means that a former Fitstop franchisee must adhere to these restrictions continuously for the full two-year duration, with no breaks or exceptions unless Fitstop provides explicit written consent. This is a standard practice in franchising to protect the brand's competitive advantage and confidential information.