Does the non-competition covenant for Fly To Fit extend to the spouse of an owner of the business?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | FA: § 13.2 MUDA: none | 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, any competitor. |
| 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, the non-competition covenant extends to the spouse of an owner of the business both during the term of the franchise agreement and after termination or expiration. During the franchise term, neither the franchisee, any owner, nor their spouse can have an ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by any competitor.
After the franchise is terminated or expires, the non-competition covenant continues for two years. During this period, the franchisee, any owner, or their spouse are prohibited from having an ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor. This restriction applies to competitors located within five miles of the former Fly To Fit territory or the territory of any other Fly To Fit business operating on the date of termination.
This means that a franchisee's spouse is significantly restricted from engaging with any competing business during the franchise term and for two years after termination or expiration, within a five-mile radius. This could impact the spouse's career options or investments. Prospective franchisees should carefully consider these restrictions and how they might affect their family's financial activities and employment opportunities.
It is important for potential Fly To Fit franchisees to fully understand the implications of these non-competition covenants, as they can significantly limit the business activities of both the franchisee and their spouse. Franchisees should seek legal counsel to fully understand the scope and enforceability of these provisions in their specific jurisdiction.