Does the expiration of the post-term restricted period under the Itan franchise agreement affect non-competition covenants in other definitive agreements?

According to Itan's 2025 Franchise Disclosure Document, the expiration of the post-term restricted period under the franchise agreement does not diminish the franchisee's or owner's obligation to comply with non-competition covenants in other definitive agreements. Even after the post-term restricted period ends, any non-competition agreements that extend beyond that period remain in full effect.

This means that if an Itan franchisee or owner has signed other agreements (referred to as "Definitive Agreements") containing non-competition clauses, those clauses will continue to bind them even after the standard post-term restriction tied to the franchise agreement has expired. The Definitive Agreements could include items such as separate employment contracts or partnership agreements.

For a prospective Itan franchisee, this highlights the importance of carefully reviewing all agreements, not just the franchise agreement, for non-competition clauses. Franchisees need to understand the full scope and duration of all their non-compete obligations, as these could extend significantly beyond the term of the franchise itself. It is advisable to seek legal counsel to fully understand these obligations before signing any agreements.