What happens to the time period of the Caring Transitions agreement if there is a violation of its terms?

According to Caring Transitions' 2025 Franchise Disclosure Document, the time period referred to in subparagraph 4(a) concerning post-term covenants will be paused or 'stayed' during any violation or breach of its terms. This means that if a franchisee violates the terms of the agreement, the clock stops on the restrictive period, and it will not resume until the violation ceases.

Specifically, section 4 outlines covenants that Covenantors (which may include the franchisee or related parties) agree to after the termination of the franchise agreement. These covenants restrict certain competitive activities for a defined period. The referenced subparagraph 4(a) likely specifies the duration of these restrictions, such as refraining from engaging in a competitive business within a certain radius of a Caring Transitions franchise.

This clause protects Caring Transitions by ensuring that franchisees cannot simply violate the agreement towards the end of the restrictive period to circumvent its intended purpose. The pause in the time period provides Caring Transitions with continued protection against unfair competition even if a franchisee breaches the agreement. Franchisees should be aware that any violation of these post-term covenants will effectively extend the period during which they are restricted from engaging in competitive activities.