During the term of the Flowerama franchise, what is the scope of the non-competition covenant regarding involvement in competing businesses?

According to Flowerama's 2024 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are subject to a non-competition covenant. This covenant restricts franchisees from involvement in any competing business anywhere in the United States.

This means that while operating a Flowerama franchise, a franchisee cannot own, operate, or be involved in any other business that competes with Flowerama, regardless of the location within the United States. This restriction is quite broad, potentially limiting a franchisee's ability to pursue other business ventures, even those seemingly unrelated or located far from their Flowerama franchise.

For existing Flowerama Centers that transition to a co-branded arrangement, the specific non-competition requirements will be outlined in their existing Franchise Agreement. Prospective franchisees should carefully review Section 21 G of the Franchise Agreement to fully understand the scope and limitations of this non-competition covenant during the franchise term.