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Under what condition can a court modify the non-competition restrictions for an Aw franchise?

Q: Under what condition can a court modify the non-competition restrictions for an Aw franchise?

- 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)

Aw Franchise · 2025 FDD

Answer 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 non-competition restrictions within the franchise agreement may be modified by a court. This modification can occur if the court deems it necessary to ensure that the non-competition agreements are valid and enforceable against the franchisee. This acknowledges that public policies vary across jurisdictions and can change over time, potentially affecting the enforceability of the original agreement.

This provision is included because Aw operates in numerous jurisdictions, each with its own public policies and legal standards. These policies can evolve, potentially rendering certain aspects of the non-competition restrictions unenforceable in specific areas. By allowing a court to modify the agreement, Aw aims to maintain the enforceability of the non-competition clauses to the greatest extent possible under local laws.

For a prospective Aw franchisee, this clause offers a degree of protection. If the non-competition restrictions are overly broad or conflict with local laws, a court can adjust them to be fair and enforceable. However, it also means that the franchisee cannot assume the non-competition agreement is entirely fixed; it can be altered by a court depending on the specific circumstances and jurisdiction. Franchisees should seek legal counsel to understand how these restrictions apply in their specific location and what their rights and obligations are.

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.

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