Under what circumstances will the time limitation of Section 18 be tolled for Mr. Sandless franchisees?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the time limitation of Section 18, which likely refers to a restrictive covenant or non-compete agreement, will be tolled during any default under the Franchise Agreement. This means that if a Mr. Sandless franchisee violates the terms of their agreement with Mr. Sandless, the period during which they are restricted from competing with the franchise may be extended.

This provision protects Mr. Sandless by ensuring that franchisees cannot avoid their non-compete obligations by breaching the agreement. For example, if a franchisee defaults on royalty payments for six months and then terminates the agreement, the non-compete period could be extended by those six months of default. This prevents a franchisee from strategically defaulting to shorten the time they are bound by the non-compete clause.

For a prospective franchisee, this clause highlights the importance of adhering to the Franchise Agreement. Any form of default, whether financial or operational, could prolong the period during which they are restricted from engaging in competitive activities after leaving the Mr. Sandless system. Franchisees should fully understand their obligations and the potential consequences of non-compliance to avoid triggering this tolling provision.