Does Exhibit B to the Endless Summer Sweets disclosure document include a Guaranty and Non-Compete Agreement?

According to the 2024 Endless Summer Sweets Franchise Disclosure Document, Exhibit 3, not Exhibit B, includes the Guaranty and Non-Compete Agreement. This agreement is executed by the guarantor in favor of Endless Summer Sweets Franchising, Inc.

The Guaranty and Non-Compete Agreement includes covenants not to compete. During the term of the Franchise Agreement, the guarantor cannot have any ownership interest in, lend money or provide financial assistance to, provide any services to, or be employed by, any competitor. After the Franchise Agreement expires or is terminated for any reason, the guarantor is restricted for two years from involvement with any competitor within twenty-five (25) miles of the franchisee's territory or any other Endless Summer Sweets business operating on the date of termination or transfer.

These non-compete restrictions are standard in franchising to protect the brand and its market. The guarantor also acknowledges that all customer data generated or obtained is confidential information belonging to Endless Summer Sweets. This obligation to maintain confidentiality survives the termination or expiration of the Franchise Agreement indefinitely. Prospective franchisees should carefully review these restrictions and understand their implications before signing the agreement.