For All States M.E.D., what happens if a court determines a restriction is unenforceable?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
Individual acknowledges that each of the terms stated here, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Franchisee, Company, and Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks, and Individual waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable. If, however, a court of competent jurisdiction determines that any such restriction is unreasonable or unenforceable, then Individual shall submit to the reduction of any such activity, time period or geographic restriction necessary to enable the court to enforce such restrictions to the fullest extent permitted under applicable law. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the individual acknowledges that the terms and restrictive covenants are fair and reasonably required to protect the Franchisee, Company, Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks. The individual also waives any right to challenge these restrictions as being overly broad, unreasonable, or otherwise unenforceable.
However, if a court of competent jurisdiction determines that any restriction is unreasonable or unenforceable, the individual must submit to a reduction of the activity, time period, or geographic restriction to enable the court to enforce the restrictions to the fullest extent permitted under applicable law.
It is the desire and intent of both parties that the provisions of the agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.