Who is subject to the non-compete restrictions after the Pearce Bespoke franchise agreement expires or is terminated?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) will not, directly or indirectly, for a period of two (2) years after this Agreement expires or is terminated (except for a termination as a result of a Franchisor's breach), on their own account or as an employee,
consultant, partner, officer, director, or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any resale of a mobile business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories located within the Franchised territory within a ten (10) mile radius of the thereof or any Pearce Bespoke Franchise. Franchisee expressly agrees that the two (2) year period and the ten (10) mile radius are the reasonable and necessary time and distance needed to protect Franchisor if this Agreement expires or is terminated for any reason.
C. Extension During Breach.
Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) acknowledge and agree that the two (2) year non-competition period set forth in Section 18(B) above will be extended for a period of time equal to the time during which the Franchisee is in breach of any of the provisions of Section 18(B).
D. Injunctive Relief.
Franchisee agrees that damages alone cannot adequately compensate Franchisor if there is a violation of these non-competition covenants, and Franchisee stipulates that Franchisor would be irreparably harmed by such a violation and that preliminary and permanent injunctive relief is essential and must be entered for the protection of Franchisor, and Franchisee hereby agrees to waive any and all defenses to the entry of such injunction(s). Preliminary and permanent injunctive relief will be entered by a court of competent jurisdiction enforcing the non-competition covenants without Franchisor posting any bond or security, in addition to all other remedies that may be available to Franchisor at equity or law.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the non-compete restrictions after the franchise agreement expires or is terminated apply to the franchisee, all personal guarantors, and owners of all or part of the franchisee.
Specifically, these parties are restricted from engaging in any resale of a mobile business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories. This restriction applies within the franchised territory and within a ten (10) mile radius of it, or any Pearce Bespoke Franchise. The non-compete period lasts for two (2) years after the agreement expires or is terminated, unless the termination is a result of Pearce Bespoke's breach of the agreement.
Furthermore, the document states that if the franchisee is in breach of the non-competition provisions, the two-year non-competition period will be extended by a period equal to the time during which the franchisee was in breach. Pearce Bespoke also stipulates that damages may not adequately compensate them if the non-compete covenants are violated, and they are entitled to preliminary and permanent injunctive relief for protection without needing to post bond or security.