factual

Are the covenants in Section 10 of the Black Bear Diner franchise agreement considered independent of each other?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

Each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Section 10 is held unreasonable, then it shall be amended to provide for limitations upon post-term competition to the maximum extent provided and permitted by law.

Source: Item 23 — RECEIPT (FDD pages 56–243)

What This Means (2025 FDD)

According to the 2025 Black Bear Diner Franchise Disclosure Document, the covenants outlined in Section 10 of the franchise agreement are designed to be independent of each other. This means that each covenant stands on its own and is not contingent on the validity or enforceability of any other covenant or provision within the agreement.

This independence has significant implications for a Black Bear Diner franchisee. If a court finds any part of Section 10 to be unreasonable or unenforceable, the rest of the section remains in effect. Specifically, the document states that if any portion of a covenant is deemed unreasonable, it should be amended to allow for the maximum possible limitations on post-term competition as permitted by law. This ensures that Black Bear Diner retains as much protection as possible regarding non-competition, even if the original terms are adjusted.

This approach is fairly common in franchising, as it protects the franchisor's interests by ensuring that at least some form of non-compete agreement remains enforceable. A prospective franchisee should understand that even if certain restrictions seem overly broad, they could be modified by a court rather than being completely nullified, and the franchisee would still be bound by the amended terms.

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.