What happens if a Casiola franchisee engages in Prohibited Activities during the Restricted Period?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the prohibited activity (any such extension of time will not be construed as a waiver of your breach or otherwise impair any of our rights or remedies relating to your breach).
You agree that this restriction is fair and reasonable and that if you did engage in a Prohibited Activity that such actions would constitute acts of unfair competition and will irreparably harm us 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 any Prohibited Activities during the Restricted Period, the Restricted Period will be extended by the period of time during which the franchisee was engaging in the prohibited activity. This extension will not be considered a waiver of the breach, nor will it impair any of Casiola's rights or remedies related to the breach.
The FDD states that engaging in Prohibited Activities constitutes acts of unfair competition and will irreparably harm Casiola and the System. The franchisee acknowledges that the restriction is fair and reasonable.
This clause is designed to protect Casiola's business interests and prevent franchisees from using the knowledge and experience gained during their franchise term to unfairly compete with the brand after the franchise agreement ends. Prospective franchisees should carefully consider the scope and duration of the Restricted Period and the definition of Prohibited Activities to fully understand the limitations they will face if they choose to exit the Casiola system and pursue other business ventures.