In the event that a law requires action not specified in the Anago franchise agreement, how will this affect the agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
If any court finally holds that the time or territory or any other provision in this Section is an unreasonable restriction upon You, You agree that the provisions of this Agreement are not rendered void, but apply as to the scope, time and territory or to any other extent as the court may judicially determine or indicate is a reasonable restriction under the circumstances involved.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
Based on the 2025 FDD, if a court determines that any provision within the Anago franchise agreement, such as those pertaining to time, territory, or other aspects, imposes an unreasonable restriction on the franchisee, the agreement's provisions are not voided. Instead, they will be applied to the extent that the court deems reasonable under the specific circumstances. This ensures that the agreement remains in effect, modified only to comply with what the court considers a fair restriction.
This clause protects Anago by ensuring the entire agreement isn't nullified due to one unreasonable clause. It allows for judicial modification to maintain enforceability. For a prospective franchisee, this means that even if certain restrictions seem overly burdensome, a court might adjust them rather than invalidate the entire agreement.
However, the franchisee should be aware that they are still bound by the agreement to the extent deemed reasonable by the court. This could mean that while some aspects of the agreement might be relaxed, the core obligations and restrictions could still apply. It is important to seek legal counsel to understand the potential implications of this clause and how it might affect their specific situation.