Does the Aw franchise agreement state that the prevailing non-competition restrictions may be modified by a Court?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2 Court Modification of Agreement. You agree that this form of Agreement is prepared for use in many jurisdictions with differing public policies and that such public policies change. Accordingly, you agree that the prevailing non-competition restrictions set forth above may be modified by a Court to the extent necessary to make the non-competition agreements valid and enforceable against you.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement acknowledges that non-competition restrictions may be modified by a court. Specifically, the agreement recognizes that it is drafted for use across various jurisdictions with differing public policies, which are subject to change.
This provision in Aw's franchise agreement allows a court to modify the non-competition restrictions to ensure they are valid and enforceable. This means that if a specific restriction is deemed too broad or unreasonable under local laws, the court can adjust the terms to make them legally compliant.
For a prospective Aw franchisee, this clause offers a degree of protection against overly restrictive non-compete terms. It ensures that the non-competition agreements are reasonable and enforceable within their specific jurisdiction. However, it also means that the franchisee must be prepared to potentially litigate the terms of the non-compete agreement if they believe it is overly broad or unenforceable.