If a provision of the Auntie Annes agreement is declared invalid, what happens to the remaining provisions?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
Should any provision of this Agreement be declared invalid for any reason, such invalid provisions shall not affect the validity of any other provisions, which other provisions shall remain in force and effect as if this Agreement had been executed with the invalid provisions eliminated.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if a provision in the Franchise Agreement is deemed invalid, the remaining provisions will still be valid and remain in effect. The agreement will be interpreted as if the invalid provisions were removed when the agreement was initially created. This is known as a severability clause, and it is a common clause in franchise agreements.
For a prospective Auntie Annes franchisee, this means that if a court or agency finds a particular part of the agreement to be unenforceable, the rest of the agreement remains binding. This protects both the franchisee and Auntie Annes by ensuring that the entire agreement does not become void due to a single unenforceable clause.
However, franchisees should be aware of addenda to the franchise agreement that may supersede the original agreement. For example, the Washington Addendum states that if any provisions in the Disclosure Document or Franchise Agreement are inconsistent with the Washington Franchise Investment Protection Act, the provisions of the Act will prevail. Similarly, the Illinois Franchise Disclosure Act includes provisions that prevent franchisees from waiving rights conferred by the Act.