After termination or expiration of a Fly To Fit franchise, what geographic area is covered by the non-competition covenants?
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, the non-competition covenant after the franchise is terminated or expires restricts the franchisee, any owner of the business, or any spouse of an owner from engaging in competitive activities. This restriction applies for a period of two years.
The geographic scope of this covenant extends to a five-mile radius around the franchisee's former territory. It also includes the territory of any other Fly To Fit business operating on the date of termination or expiration. This means that a former franchisee cannot operate or be involved with a competing business within this defined area.
This non-compete agreement is something a prospective Fly To Fit franchisee should carefully consider. It limits their ability to work in a similar field within a specific geographic area for two years after leaving the franchise. Franchisees should evaluate whether this restriction could pose a significant burden on their future career options and financial stability.