What happens to the non-compete period for Endless Summer Sweets if the franchisee is in violation of the covenant?

According to the 2024 Endless Summer Sweets FDD, if a franchisee or any restricted party violates the non-compete obligations, the restrictive period is extended. For each day of noncompliance with the non-compete agreement, an additional day will be added to the overall restrictive period.

This means that if a franchisee were to breach the non-compete agreement for, say, 30 days, the original non-compete period would be extended by 30 days. This extension applies to the post-term non-compete obligations, ensuring that Endless Summer Sweets's interests are protected even if a franchisee violates the agreement.

This provision is designed to discourage franchisees from violating the non-compete agreement, as any breach will effectively prolong the period during which they are restricted from engaging in competitive activities. Franchisees should be aware of this clause and ensure they fully comply with the non-compete terms to avoid extending their post-term restrictions.