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To what extent is each provision of the Bor Restoration franchise agreement addendum effective?

Bor_Restoration Franchise · 2024 FDD

Answer from 2024 FDD Document

Each provision of this Addendum is effective only to the extent that the jurisdictional requirements of the Act are met independently of this Addendum. To the extent that the Franchise Agreement or any of its exhibits or attachments is/are deemed to be inconsistent with any term, covenant, or condition of this Addendum, the terms of this Addendum will govern. If, however, Franchisee's choice of Arbitration under the Federal Arbitration Act supersedes the application of state law, then the terms of the Franchise Agreement will prevail

Source: Item 23 — Receipts (FDD pages 40–202)

What This Means (2024 FDD)

According to Bor Restoration's 2024 Franchise Disclosure Document, the addendum to the franchise agreement has specific conditions determining its effectiveness. Each provision within the addendum is effective only if it independently meets the jurisdictional requirements of the relevant Acts. This means that the enforceability of any clause in the addendum depends on whether it complies with the laws of the specific jurisdiction where the franchise is operating.

Furthermore, the addendum is designed to take precedence over any conflicting terms in the original franchise agreement. If any inconsistency arises between the addendum and the franchise agreement (including its exhibits or attachments), the terms outlined in the addendum will govern. This ensures that the most current and relevant terms apply to the franchise relationship. However, there is an exception: if the franchisee's choice of arbitration under the Federal Arbitration Act supersedes state law, then the terms of the original Franchise Agreement will prevail.

In essence, the addendum serves to modify the original franchise agreement, but its effectiveness is contingent upon compliance with local jurisdictional laws. Franchisees should be aware that the interplay between the addendum, the franchise agreement, and applicable laws can be complex, and they should seek legal counsel to fully understand their rights and obligations.

Disclaimer: This information is extracted from the 2024 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.