After termination or expiration of a Fly To Fit franchise, what is the geographic limit of the non-competition covenant?

Question

Accepted Answer

| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| n. Franchisor’s right of first refusal to acquire franchisee’s business | FA: § 15.5 MUDA: none | If you want to transfer your business (other than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. |
| o. Franchisor’s option to | Not Applicable |  |
| purchase franchisee’s |  |  |
| business |  |  |
| p. Death or disability of franchisee | FA: §§ 2.4, 15.4 MUDA: none | If you die or become incapacitated, a new principal executive acceptable to us must be designated to operate the business, and your executor must transfer the business to an approved new owner within nine months. |
| 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)

After termination or expiration of a Fly To Fit franchise, what is the geographic limit of the non-competition covenant?

Answer from 2024 FDD Document

What This Means (2024 FDD)

Provision	Section in franchise or other agreement	Summary
n. Franchisor’s right of first refusal to acquire franchisee’s business	FA: § 15.5 MUDA: none	If you want to transfer your business (other than to your co-owner or your spouse, sibling, or child), we have a right of first refusal.
o. Franchisor’s option to	Not Applicable
purchase franchisee’s
business
p. Death or disability of franchisee	FA: §§ 2.4, 15.4 MUDA: none	If you die or become incapacitated, a new principal executive acceptable to us must be designated to operate the business, and your executor must transfer the business to an approved new owner within nine months.
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.