If the geographic scope of the Baya Bar non-compete is deemed unreasonable, how will it be adjusted?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
- d. If the period of time or the geographic scope specified Section 2.b. above, should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable.
In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement or any portion thereof, without Covenantor's or Franchisee's consent, effective immediately upon receipt by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 56)
What This Means (2024 FDD)
According to Baya Bar's 2024 Franchise Disclosure Document, if the geographic scope of the non-compete agreement is deemed unreasonable in any legal proceeding, the geographic scope will be reduced by eliminating a portion of it. This ensures that the restrictions are enforceable for a scope that is considered reasonable.
In addition, Baya Bar has the right to reduce the scope of any covenant within the agreement at its discretion without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice, and the franchisee is obligated to comply with the revised covenant.
This provision allows for flexibility in enforcing the non-compete agreement, ensuring it aligns with legal standards of reasonableness while still protecting Baya Bar's interests. Prospective franchisees should understand that the non-compete terms can be modified, potentially impacting their future business activities after the franchise agreement ends.