1. Section Scope & Legal Intent
2. Mandatory Standards & Operating Requirements
All participants subject to this policy must strictly adhere to the following mandatory standards:
- In the event of non-curable material breach, ePaisay may terminate the Franchise Agreement immediately upon written notice.
- For curable operational breaches, the Franchisee is granted a 30-day formal cure window to fully remediate the deficiency.
- Upon termination, Franchisees must immediately cease trademark use, remove physical signage, return all proprietary equipment, and honor a 12-month territory non-compete.
3. Explicit Prohibitions & Violation Triggers
The following actions constitute direct non-compliance and trigger automatic intervention by the Warning and Violation System:
- Continuing to display ePaisay signage or trademarks after formal agreement termination.
- Operating a competing regional marketplace hub in the same geographic territory within 12 months of termination.
- Misappropriating customer or merchant contact databases gathered during franchise operations.
4. Warning & Violation System Enforcement Matrix
Each violation under this section is mapped directly to the automated warning and sanction ladder:
| Violation Code | Offense Description | Detection Method | Severity Tier | Cure Window | Mandatory Sanction |
|---|---|---|---|---|---|
VIOL-365-01 |
Post-termination trademark infringement or unauthorized continued operation. | Brand IP Enforcement Unit | Tier 4 (Critical) | Immediate | Immediate federal/high-court injunction, seizure of infringing signage, $10,000 liquidated damages. |
VIOL-365-02 |
Breach of post-termination 12-month restrictive non-compete covenant. | Market Intelligence Report | Tier 4 (Critical) | Immediate | Legal action for injunctive relief and full disgorgement of competing profits. |
VIOL-365-03 |
Failure to complete de-branding within 14 days of contract expiry. | Regional Field Agent Inspection | Tier 3 (High) | 7 Days | Daily $100 penalty assessed against remaining security deposit. |
5. Platform Safe Harbor & Limitation of Liability
Platform Intermediary Status: ePaisay provides the technological marketplace venue connecting independent counterparties. ePaisay is not a vendor, retailer, agent, or guarantor of any product, service, or transaction governed herein.
Total Disclaimer of Warranties: The platform disclaims all warranties of merchantability, fitness for particular purpose, and non-infringement to the fullest extent permissible by applicable law.
Limitation of Damages: In no event shall ePaisay, its officers, directors, or employees be liable for incidental, indirect, punitive, or consequential damages. Aggregate liability is strictly capped at the lesser of $100 USD or platform fees paid in the preceding three months.
Participant Indemnification: The participant agrees to defend, indemnify, and hold harmless ePaisay against any third-party claims, regulatory penalties, legal fees, or damages arising out of violations of this Section.