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Under what conditions can the 2-year restrictive period of the 7 Brew covenant not to compete be extended?

7_Brew Franchise · 2025 FDD

Answer from 2025 FDD Document

You, each owner, and your and their Immediate Families will each be bound by these competitive restrictions for two (2) years beginning on the effective date of this Agreement's termination or expiration. However, if a restricted person does not begin to comply with these competitive restrictions immediately, the two (2)-year restrictive period for that non-compliant person will not start to run until the date on which that person begins to comply with the competitive restrictions (whether or not due to the entry of a court order enforcing this provision). The running of the two (2)-year restrictive period for a restricted person will be suspended whenever that restricted person breaches this Section and will resume when that person resumes compliance. The restrictive period also will be tolled automatically during the pendency of a proceeding in which either party challenges or seeks to enforce these competitive restrictions. These restrictions also apply after a permitted transfer under Section 16 above. You (and your owners) expressly acknowledge that you (and they) possess skills and abilities of a general nature and have other opportunities for exploiting those skills. Consequently, our enforcing the covenants made in this Section 19.E will not deprive you (and them) of personal goodwill or the ability to earn a living. The terms of Section 12.B of this Agreement also apply to the competitive restrictions described in this Section 19.E.

Source: Item 22 — CONTRACTS (FDD pages 82–83)

What This Means (2025 FDD)

According to 7 Brew's 2025 Franchise Disclosure Document, the standard two-year non-compete period can be extended under specific circumstances. If a former franchisee or owner does not immediately comply with the competitive restrictions, the two-year period will not begin until they start complying.

Additionally, the two-year period is suspended any time the restricted individual breaches the non-compete agreement. The period resumes only when the person returns to compliance.

Finally, the restrictive period is automatically extended during any legal proceedings where either party is challenging or trying to enforce the competitive restrictions. These extensions ensure that 7 Brew can protect its interests and brand integrity even if a former franchisee delays or violates the terms of the non-compete agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.