What is the scope of the Precision Door Service covenant not to compete?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
ings to seek the entry of protective orders or other appropriate relief. Nothing in this Agreement shall be construed to interfere with a party's obligations to comply with lawful court orders; however, no disclosure of Confidential Information by a party pursuant thereto shall be deemed to place the Confidential Information in the public domain or to relieve the party from the future performance of all its confidentiality obligations under this Agreement, absent express orders of the court to the contrary.
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- Covenant Not to Compete. Except as otherwise approved in writing by Franchisor, you may not, directly or indirectly, through, on behalf of, or in conjunction with, any other person, partnership, or legal entity, own, maintain, operate, or engage or participate in, inure benefit to, or have any financial interest, either as an officer, agent, employee, principal, partner, director, shareholder or any other individual or representative capacity, in any corporation, partnership or other legal entity that engages in any business that is the same as or similar to the Franchise, or is otherwise in competition with the business of Franchisor or Franchisor's franchisees, that engages in the distribution of similar products, services and/or equipment and that is located (a) anywhere, while the Franchise Agreement is in effect or (b) (i) within the territory specified on the Data Sheet to the Franchise Agreement, (ii) within a 35-mile radius of the outer boundary of such territory, or (iii) inside the territory of another Precision Garage
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to the 2025 FDD, Precision Door Service's covenant not to compete restricts franchisees from engaging in any business that is the same as or similar to the Precision Door Service business. This includes businesses that compete with the franchisor or its franchisees, engage in the distribution of similar products, services, or equipment. The restriction applies to any involvement, direct or indirect, whether as an owner, operator, employee, or in any other capacity with a financial interest in such a competing business.
The covenant applies unless the franchisor provides written approval otherwise. The FDD states that the restrictions apply to businesses that engage in the distribution of similar products, services and/or equipment. The document does not specify a geographic radius or time duration for the non-compete clause.
The FDD also states that each covenant within the agreement is considered independent. If any part of the non-compete agreement is successfully contested and deemed unenforceable due to its coverage area, the provision will be modified to provide the maximum coverage that a court or arbitrator deems reasonable and necessary to protect Precision Door Service's interests. This ensures that the non-compete is interpreted as broadly as possible while remaining legally valid.