Is the non-compete period for Dryer Vent Squad tolled during periods of non-compliance?
Dryer_Vent_Squad 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 Dryer Vent Squad Business, and that for 24 months after the expiration of termination of the Franchise Agreement (with said period being tolled during any periods of non-compliance), 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 Dryer Vent Squad Business. Your managers will be required by us to sign a confidentiality agreement. (Franchise Agreement, Articles 2.C., 4.A., 6 and 14.C.).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2024 FDD)
According to the 2024 Dryer Vent Squad Franchise Disclosure Document, the non-compete period is tolled during periods of non-compliance. Specifically, franchisees are prohibited from participating in any competitive business within their Operating Territory and a 25-mile radius surrounding it for 24 months after the expiration or termination of the Franchise Agreement.
This 24-month period can be extended if the franchisee is in non-compliance with the Franchise Agreement. The tolling provision means that any time spent in non-compliance will be added to the end of the 24-month non-compete period, effectively lengthening the time a former franchisee must refrain from engaging in a competitive business.
This provision protects Dryer Vent Squad by ensuring that franchisees adhere to the terms of the agreement, even after the franchise relationship ends. It serves as a deterrent against non-compliance, as any breach of the agreement could result in a longer period during which the former franchisee is restricted from competing with Dryer Vent Squad. Franchisees should ensure they understand and comply with all terms of the Franchise Agreement to avoid extending their non-compete obligations.