Under what condition would the restriction on soliciting or hiring each other's employees be prohibited for Fat Shack, the Company, and Associates, according to the All Canadian Provinces Rider to the Nondisclosure and Noncompetition Agreement?

According to Fat Shack's 2025 Franchise Disclosure Document, the All Canadian Provinces Rider to the Nondisclosure and Noncompetition Agreement specifies conditions under which restrictions on soliciting or hiring employees are prohibited. Specifically, Fat Shack, the Company (franchisee), and the Associate agree that they will not be restricted by the agreement from soliciting or hiring each other's employees if such a restriction is prohibited by applicable law.

This means that if a law in any Canadian province prevents Fat Shack from enforcing a non-solicitation or non-hiring clause against its franchisees, their employees, or associates, then the terms of the Nondisclosure and Noncompetition Agreement will not apply. The rider explicitly states that any provision in the agreement that contradicts applicable law is amended to comply with that law.

For a prospective Fat Shack franchisee in Canada, this is an important consideration. Franchisees should be aware of the employment laws in their specific province regarding non-solicitation and non-hiring agreements. If provincial law prohibits such restrictions, this rider ensures that Fat Shack cannot enforce those restrictions, providing more flexibility in hiring and managing staff. It is recommended that franchisees consult with legal counsel to understand the specific implications of these laws in their province.