During the term of the Fly To Fit agreement, can the franchisee lend money to a competitor?
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 Co
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 franchise agreement, the franchisee, any owner, or any spouse of an owner is prohibited from lending money or providing financial assistance to any competitor. This restriction is explicitly outlined in the covenants not to compete section of the agreement. This restriction applies to the franchisee, owners, and their spouses.
This restriction is in place to protect Fly To Fit's business interests by preventing franchisees from supporting competing businesses while they are still operating a Fly To Fit franchise. This measure ensures that franchisees remain fully committed to the success of their Fly To Fit business and do not divert resources or knowledge to competitors.
Furthermore, a similar restriction applies to the guarantor of the franchise agreement. The guarantor is also prohibited from lending money or providing financial assistance to a competitor during the term of the Franchise Agreement. This ensures that all parties with a significant stake in the franchise's success are aligned in preventing competition.