Does the Baya Bar agreement acknowledge that the covenants will impose undue hardship on the covenantor?

According to the 2024 Baya Bar Franchise Disclosure Document, the agreement explicitly states that the covenants within it will not impose undue hardship on the covenantor. The agreement asserts that the covenantor possesses other considerable skills, experience, and education that provide opportunities to earn income from other sources. This statement is designed to support the enforceability of the non-compete and confidentiality clauses, by arguing the covenantor is not unduly restricted from earning a living.

This acknowledgement is important because non-compete agreements are often challenged in court on the grounds that they are overly restrictive and create an undue hardship on the individual. By including this statement, Baya Bar aims to preempt such challenges by asserting that the covenantor has other means of supporting themselves.

However, a prospective franchisee should carefully consider the implications of this clause. While Baya Bar asserts that it does not create undue hardship, individual circumstances may vary. A franchisee should assess their own skills, experience, and education to determine if the non-compete agreement would, in their specific case, create an undue hardship. It is advisable to seek legal counsel to fully understand the enforceability and potential impact of these covenants.