What is considered a 'Competitor' to a Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
isee acknowledges that all Confidential Information is owned by Fly To Fit Franchise (except for Confidential Information which Fly To Fit Franchise licenses from another person or entity). This Section will survive the termination or expiration of this Agreement indefinitely.
13.2 Covenants Not to Compete.
- (a) Restriction In Term. During the term of this Agreement, neither Franchisee, any Owner, nor any spouse of an Owner (the "Restricted Parties") shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor.
- (b) Restriction Post Term. For two years after this Agreement expires or is terminated for any reason (or, if applicable, for two years after a Transfer), no Restricted Party shall directly or indirectly have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any Competitor within five miles of Franchisee's Territory or the territory of any other Fly To Fit business operating on the date of termination or transfer, as applicable.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, during the term of the agreement, franchisees, owners, and their spouses are restricted from having any ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by any 'Competitor'.
After the franchise agreement expires or is terminated, this restriction continues for two years. During this post-term period, the restricted parties are prohibited from engaging with any 'Competitor' within five miles of the franchisee's territory or the territory of any other Fly To Fit business operating at the time of termination or transfer. If the territory hasn't been determined before termination, the non-competition area will be the Development Area and the territory of any other Fly To Fit business.
Furthermore, if a franchisee seeks to transfer their franchise, the proposed assignee must not be a 'Competitor' to be approved by Fly To Fit. This indicates that Fly To Fit carefully considers competitive interests when approving new franchisees or transfers to maintain the integrity of its franchise system.