What happens if a restriction in clause 20 of the Bevaris Alliance agreement is held to be void?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.4 Each of the restrictions in this clause 20 is intended to be separate and severable. If any of the restrictions are held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to the 2024 FDD, clause 20.4 of the Bevaris Alliance franchise agreement addresses the severability of restrictions. This clause states that if any restriction within clause 20 is deemed void, but could be valid with a minor deletion, the restriction will be modified to apply with the necessary deletion to make it valid and effective. This ensures that as much of the original intent of the restriction as possible is upheld.
For a prospective Bevaris Alliance franchisee, this means that the restrictions outlined in clause 20, which likely pertain to non-compete and confidentiality obligations, are designed to be enforceable to the fullest extent possible. Even if a specific part of a restriction is found to be unenforceable, the remaining parts of the restriction will still apply if they can be modified to be valid. This protects Bevaris Alliance's interests by ensuring that franchisees are bound by the restrictions to the greatest degree allowed by law.
This clause is a common legal safeguard in franchise agreements. It aims to prevent an entire restrictive covenant from being invalidated due to a minor, potentially unintentional, overreach. Franchisees should be aware that Bevaris Alliance intends to enforce these restrictions as much as possible, and legal challenges to these clauses may only result in minor adjustments rather than complete invalidation.