Are equitable remedies available to Caring Transitions if a franchisee breaches the non-compete agreement?

According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions has access to equitable remedies if a franchisee violates the non-compete agreement. In addition to liquidated damages, Caring Transitions can pursue other legal options, including attorneys' fees and costs. This provision ensures that Caring Transitions can seek a court order to stop a franchisee from continuing to violate the non-compete terms, which is a common practice in franchising to protect the brand and its franchisees.

The non-compete agreement states that franchisees acknowledge the geographic and temporal restrictions are reasonable and necessary to protect Caring Transitions' business interests. If a franchisee breaches the non-compete agreement, they must pay Caring Transitions a royalty equal to 15% of the gross amount of all income, sales, salary, wages, fees, dividends, distributions, and other compensation received or earned due to the breach. This applies to the franchisee, their spouse, child, parent, or sibling, or any principal of the franchisee.

This payment of 15% is considered liquidated damages and not a penalty. However, it does not prevent Caring Transitions from pursuing other remedies, including equitable relief, attorneys' fees, and costs. The time period of the non-compete agreement will be extended by the duration of any violation or breach. These covenants remain in effect even after the franchise agreement expires, terminates, or is transferred, ensuring long-term protection for Caring Transitions.