What can a court do to the terms of the Bang Cookies agreement if it deems them unreasonable?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Each section of this Agreement, including each subsection and portion thereof, is severable. In the event that any section, subsection or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms reasonable in scope, duration and geographic area.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if a court finds any section of the agreement unenforceable, it can impose limitations on the terms to make them reasonable. This applies to the scope, duration, and geographic area of the terms.
This provision ensures that if any part of the franchise agreement is deemed too restrictive or unfair, a court has the power to modify those specific terms rather than invalidate the entire agreement. This is a fairly standard clause in franchise agreements, designed to balance the interests of both the franchisor and the franchisee.
For a prospective Bang Cookies franchisee, this means that certain clauses that might seem overly broad or restrictive at first glance have a built-in mechanism for judicial review and potential modification. It provides a degree of protection against unreasonable terms, ensuring they can be adjusted to be fair and equitable. However, it's important to note that the court's intervention is not guaranteed, and it depends on the specific circumstances and the court's discretion.