If a restriction in the All Team franchise agreement is deemed too broad, can it be limited by a court?
All_Team Franchise · 2025 FDDAnswer 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, if any restriction within the franchise agreement is considered too broad to be enforced, a court with the appropriate jurisdiction has the authority to modify or limit the restriction. This modification would be to the extent necessary to allow the restriction to be enforced. This clause ensures that while All Team aims to protect its business interests, the restrictions placed on franchisees are reasonable and legally sound.
This provision offers a degree of protection to the franchisee. It prevents All Team from imposing overly broad or unreasonable restrictions that could unduly limit the franchisee's ability to operate their business or earn a livelihood. The court's ability to modify the restriction ensures a balance between protecting All Team's interests and the franchisee's rights.
It's important for prospective All Team franchisees to understand this clause in conjunction with other clauses in the franchise agreement, particularly those outlining specific restrictions such as non-compete agreements or operational limitations. Franchisees should seek legal counsel to fully understand the implications of these restrictions and the potential for judicial modification.