Does engaging in prohibited activities during the restricted period waive Casiola's rights or remedies?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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 restricted period will be extended by the amount of time the franchisee was engaged in the prohibited activity. This extension will not be considered a waiver of the franchisee's breach, nor will it impair any of Casiola's rights or remedies related to the breach.
This means that Casiola retains all rights and remedies, including legal action, despite the extension of the restricted period due to the franchisee's prohibited activities. The franchisee cannot argue that Casiola has waived its rights simply because the restricted period was extended.
This provision protects Casiola by ensuring that any violation of the non-compete agreement does not diminish its ability to enforce the agreement and seek appropriate remedies. It also serves as a deterrent to franchisees who might consider engaging in prohibited activities, as they will face an extended period of restriction and potential legal consequences.