What happens if a provision of the Bombs Away franchise agreement is held to be unenforceable?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.7 Severability. The parties intend that (i) if any provision of this Agreement is held by an arbitrator or court to be unenforceable, then that provision be modified to the minimum extent necessary to make it enforceable, unless that modification is not permitted by law, in which case that provision will be disregarded, and (ii) if an unenforceable provision is modified or disregarded, then the rest of this Agreement will remain in effect as written.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchise agreement contains a severability clause addressing the scenario where a provision is deemed unenforceable. The intent of Bombs Away is that if any provision within the agreement is found unenforceable by an arbitrator or court, the provision should be modified to the minimum extent necessary to make it enforceable.
However, if the modification to make the provision enforceable is not permitted by law, then the specific provision will be disregarded. The key point is that even if a provision is modified or disregarded due to being unenforceable, the remainder of the franchise agreement will remain in full effect as if it were written originally.
This "severability" clause is a fairly standard provision in franchise agreements. It aims to preserve the overall contract by removing or altering only the problematic parts, rather than invalidating the entire agreement. For a prospective Bombs Away franchisee, this means that even if a specific clause is later found to be unenforceable, the core obligations and rights within the franchise agreement should still stand.