If the Restricted Period under the Itan agreement expires, does this affect the franchisee's obligation to comply with non-competition covenants in other Definitive Agreements that extend beyond the Restricted Period?

According to Itan's 2025 Franchise Disclosure Document, the expiration of the Restricted Period under the Franchise Agreement does not diminish the franchisee's obligation to comply with non-competition covenants in other Definitive Agreements that remain in effect beyond the expiration of the Restricted Period. This means that even after the post-term non-compete period associated with the Itan franchise agreement ends, franchisees must still adhere to any other non-compete agreements they've signed that are still active.

This provision ensures that Itan franchisees and their owners cannot circumvent non-competition obligations by simply waiting for the Restricted Period under the franchise agreement to expire. If other agreements, such as those related to financing or specific business ventures, contain longer-lasting non-compete clauses, those clauses remain enforceable.

For a prospective Itan franchisee, this highlights the importance of carefully reviewing all Definitive Agreements for non-competition clauses and understanding their durations. Franchisees need to be aware that their competitive restrictions may extend beyond the typical term associated with the Itan franchise itself, potentially impacting their future business opportunities. It is advisable to seek legal counsel to fully understand the scope and implications of all non-competition covenants before signing any agreements.