What are the non-competition restrictions for a Fly To Fit franchisee after the franchise is terminated or expires?
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, there are post-term non-competition covenants that restrict a franchisee's activities after the franchise is terminated or expires. Specifically, for a period of two years, the franchisee, any owner of the business, or any spouse of an owner is prohibited from having 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 franchisee's former territory. It also extends to the territory of any other Fly To Fit business operating on the date of termination. This means that the geographic scope of the non-compete is not limited to just the franchisee's immediate area but can also include other Fly To Fit locations.
These non-competition terms are outlined in Section 13.2 of the Franchise Agreement. Prospective franchisees should carefully review this section to understand the full scope of these restrictions and how they might impact their future business opportunities after leaving the Fly To Fit system. It is important to consider the enforceability of these clauses under applicable state laws, as these can vary significantly.