factual

If a provision of the non-competition agreement in the Bhc franchise agreement is held unenforceable, does the franchisee still have to abide by the remaining provisions?

Bhc Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (d) Each provision of this Article 11 is independent of each other provision of this Agreement.

Source: Item 23 — Receipts (FDD pages 52–230)

What This Means (2025 FDD)

According to Bhc's 2025 Franchise Disclosure Document, each provision within the non-competition agreement is considered independent. This means that if a court finds one part of the non-competition agreement to be unenforceable, the remaining provisions of the agreement will still remain in full effect and must be adhered to by the franchisee.

This clause protects Bhc by ensuring that as many restrictions as possible remain in place, even if one specific restriction is successfully challenged. It also clarifies that the franchisee cannot argue that the entire non-compete is invalid simply because one aspect of it is deemed unenforceable.

For a prospective Bhc franchisee, this highlights the importance of fully understanding the scope and limitations of the non-competition agreement. It may be prudent to seek legal counsel to assess the enforceability of each provision within their specific jurisdiction, as the breadth and enforceability of non-compete clauses can vary significantly by state. Even if some aspects seem questionable, the franchisee must be prepared to comply with all other unchallenged parts of the agreement.

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.