What is the consequence if a Casiola franchisee engages in Prohibited Activities during the Post-Term Restricted Period?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that during the Post-Term Restricted Period, Franchisee shall not engage in any Prohibited Activities provided, however, that the Prohibited Activities relating to Franchisee having an interest in a Competitive Business will only apply with respect to a Competitive Business that is located within a Restricted Territory. If Franchisee is engaged in any Prohibited Activities during the Post-Term Restricted Period, Franchisee agrees that Franchisee's Post-Term Restricted Period will be extended by the period of time during which Franchisee was engaging in the Prohibited Activity and, any such extension of time will not be construed as a waiver of Franchisee's breach or otherwise impair any of Franchisor's rights or remedies relating to Franchisee's breach. Franchisee agrees that the foregoing covenants and restrictions shall also apply to Franchisee's Owners and that Franchisee's Owners shall each execute and deliver to
Franchisor the Franchise Owner Agreement and Guaranty in the form attached to this Agreement as Exhibit 1. Franchisee agrees that the covenants and restrictions set forth in this Article 6.E. and otherwise in this Article 6, are fair and reasonable and that if Franchisee engaged in any Prohibited Activity that such actions would constitute acts of unfair competition, causing irreparable harm to Franchisor and the System.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee engages in Prohibited Activities during the Post-Term Restricted Period, the Post-Term Restricted Period will be extended. The extension will be for the length of time that the franchisee was engaging in the Prohibited Activity.
This extension of time will not be considered a waiver of the franchisee's breach. It also will not impair any of Casiola's rights or remedies relating to the franchisee's breach.
Additionally, Casiola states that if a franchisee engages in any Prohibited Activity, such actions would constitute acts of unfair competition, causing irreparable harm to Casiola and the System.