What is the geographic scope of the non-competition covenant after termination or expiration of a Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | FA: § 13.2 MUDA: none | For two years, neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within five miles of your former territory or the territory of any other Fly To Fit business operating on the date of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 35–39)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, after the franchise is terminated or expires, a non-competition covenant applies. This covenant restricts the franchisee, any owner of the business, or any spouse of an owner from engaging in competitive activities.
The geographic scope of this restriction extends to a five-mile radius. Specifically, the franchisee is prohibited from having ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor. This five-mile radius is calculated from the former territory of the franchisee's Fly To Fit business or the territory of any other Fly To Fit business operating on the date of termination or expiration.
This restriction is in place for a period of two years following the termination or expiration of the franchise agreement. It is important for prospective franchisees to understand this limitation, as it could impact their ability to pursue related business ventures in the specified geographic area after their franchise agreement ends. Franchisees should carefully consider the implications of this non-competition covenant before entering into a franchise agreement with Fly To Fit.