Is the post-term non-compete period for Deck Medic tolled during periods of noncompliance?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
You must also promise in writing that, among other things, during the term of the Franchise Agreement you will not participate in any business that in any way competes with a Deck Medic Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of noncompliance), you will not participate in any competitive business located within and/or servicing customers located within your Operating Territory and a 25 mile radius surrounding your Operating Territory. Further you will not participate in any competitive business located within and/or servicing customers located within the operating territory of any other Deck Medic Business. Your managers will be required by us to sign a confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 33–34)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the post-term non-compete period is tolled during periods of noncompliance. Specifically, the Franchise Agreement states that for 24 months after the expiration or termination of the agreement, the franchisee cannot participate in any competitive business within their Operating Territory and a 25-mile radius surrounding it.
This 24-month period is tolled during any periods of noncompliance. Tolling means that if the franchisee is in violation of the agreement, the clock stops on the non-compete period, and it will resume once the franchisee comes back into compliance. This provision protects Deck Medic by ensuring that franchisees cannot circumvent the non-compete agreement by being non-compliant for a period of time.
This is a fairly standard practice in franchising. The tolling provision ensures that the franchisor's interests are protected even if the franchisee violates the agreement. Prospective Deck Medic franchisees should understand this provision and ensure they remain in compliance with the Franchise Agreement to avoid extending the non-compete period.