Besides misappropriation and inevitable disclosure of Confidential Information, what else does 7 Brew consider a violation of Section 19.E or this Section to constitute?

According to the 2025 FDD, 7 Brew considers that any violation of the terms of Section 19.E or Section 12 was accompanied by the misappropriation and inevitable disclosure of Confidential Information and constitutes a deceptive and unfair trade practice and unfair competition. Section 19.E refers to the covenant not to compete. Section 12 was not included in the provided excerpts.

This means that if a franchisee violates the non-compete agreement, 7 Brew will consider this not only a breach of contract but also an act of unfair competition and a deceptive trade practice. This characterization could have significant legal and financial implications for the franchisee if 7 Brew decides to pursue legal action.

This clause is designed to protect 7 Brew's business interests, the confidentiality of its information, and the integrity of its franchise system. By including this provision, 7 Brew aims to deter franchisees from engaging in competitive activities that could harm the brand or other franchisees within the system. Prospective franchisees should carefully consider the scope and implications of the non-compete agreement and understand that any violation could be viewed as a serious offense with potential legal ramifications.