Does the Care Plus Medical Ucc agreement state that the non-compete covenants are independent of other provisions?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) Interpretation. The parties agree that each of the foregoing covenants is independent of any other covenant or provision of this Agreement. If all or any portion of the covenants in this Section is held to be unenforceable or unreasonable by any arbitrator or court, then the parties intend that the arbitrator or court modify such restriction to the extent reasonably necessary to protect the legitimate business interests of Care Plus Medical UCC. Franchisee agrees that the existence of any claim it may have against Care Plus Medical UCC shall not constitute a defense to the enforcement by Care Plus Medical UCC of the covenants of this Section. If a Restricted Party fails to comply with the obligations under this Section during the restrictive period, then the restrictive period will be extended an additional day for each day of noncompliance.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the franchise agreement states that each non-compete covenant is independent of any other covenant or provision within the agreement. Specifically, the agreement emphasizes that if any part of the non-compete is deemed unenforceable, the intent is for a court or arbitrator to modify the restriction only to the extent necessary to protect Care Plus Medical Ucc's business interests.
This independence clause means that even if other parts of the franchise agreement are disputed or found invalid, the non-compete obligations remain in effect. This is a significant point for franchisees as it limits their ability to challenge the non-compete based on other claims they might have against Care Plus Medical Ucc. The franchisee also agrees that any claims against Care Plus Medical UCC will not serve as a defense against the enforcement of the non-compete agreement.
Furthermore, if a franchisee fails to comply with the non-compete terms, the restrictive period is extended by one day for each day of noncompliance. This provision underscores the importance Care Plus Medical Ucc places on enforcing these covenants and the potential consequences for franchisees who violate them. Franchisees should be fully aware of these terms and their implications before entering into the agreement.