factual

Does the All Team franchise agreement allow a court to modify a restriction deemed too broad?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

Should any provision of this Agreement be construed or declared invalid, such decision shall not affect the validity of any remaining portion which shall remain in full force and effect as if this Agreement had been executed with such invalid portion eliminated.

If any restriction contained in this Agreement is deemed too broad to be capable of enforcement, a court of competent jurisdiction is hereby authorized to modify or limit such restriction to the extent necessary to permit its enforcement.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to the 2025 All Team Franchise Disclosure Document, the franchise agreement addresses the possibility of a court finding a restriction too broad. Specifically, the agreement states that if a court deems any restriction within the agreement too broad to be enforceable, the court is authorized to modify or limit the restriction. This modification would be to the extent necessary to permit its enforcement. This clause ensures that the entire agreement does not become invalid due to one unenforceable restriction.

This provision is beneficial for both All Team and the franchisee. It allows for the enforcement of restrictions to the fullest extent possible under the law. It also provides a mechanism for the court to revise the restriction to make it enforceable, rather than striking it down completely. This can protect All Team's business interests while ensuring the franchisee is not unduly burdened by an overly broad restriction.

This type of clause is relatively common in franchise agreements. It reflects an attempt to balance the franchisor's need to protect its brand and system with the franchisee's need to operate their business without undue constraints. Prospective franchisees should understand that while the agreement aims for reasonableness, the final determination rests with the court if a dispute arises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.