If a Carbones Pizzeria franchisee violates the non-compete clause after termination, how is the duration of the restriction affected?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. In the event of the violation of Section 4.a.(2) by Franchisee, the period of time Franchisee shall be required to abide by the breached obligation shall be extended to a period of two (2) years after Franchisee is no longer in breach of such obligation.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, if a franchisee violates the non-compete agreement after termination or assignment, the duration of the restriction is extended. Specifically, the franchisee must abide by the original obligation for an additional two years after they cease violating the agreement. This means that any breach of the non-compete terms effectively pauses the clock and adds more time to the period during which the franchisee is restricted from engaging in competitive activities.
This provision is designed to protect Carbones Pizzeria from unfair competition by former franchisees who might leverage the franchisor's training, assistance, and trade secrets. The non-compete clause prevents former franchisees from operating, owning, managing, or being employed by a competing business within a defined restricted area for a set period. The restricted area includes the Franchisee Territory, a radius of 25 miles from the Franchisee Territory and a radius of 5 miles from any other restaurant or other facility operated under the Names and Marks.
For a prospective Carbones Pizzeria franchisee, this clause highlights the importance of adhering to the non-compete agreement. Violating the agreement not only exposes the franchisee to potential legal action but also extends the duration of the restriction, potentially limiting their future business opportunities even further. The franchisee should carefully consider the implications of this clause and ensure they fully understand the scope of the non-compete obligations before signing the franchise agreement.
It is also important to note that Carbones Pizzeria can seek injunctive relief in the event of a breach or threatened breach of the non-compete provisions, meaning they can obtain a court order to stop the franchisee from violating the agreement. This remedy, in addition to extending the non-compete period, underscores the seriousness with which Carbones Pizzeria views these obligations.