Does the Casiola franchise agreement specify that the non-competition restrictions are considered fair and reasonable for Casiola franchisees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
between you and us that you are in a better position to know if you permitted and/or provide an immediate family member with access to the Know-How. Therefore, you agree that you will be presumed to have violated the terms of this Agreement if any member of your immediate family (i) engages in any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities or (ii) uses or discloses the Know-How. However, you may rebut this presumption by providing evidence conclusively demonstrating that you did not disclose the Know-How nor permit disclosure of the Know-How to the family member.
- (f) Reasonableness of Covenants and Restrictions. You agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. You waive any right to challenge the terms of this Agreement as being overly broad, unreasonable or otherwise unenforceable. Although you and we both believe that the covenants in this Agreement are reasonable in terms of scope, duration and geographic are, we may at any time unilaterally modify the terms of this Article 4 (Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions) by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon you under this Article 4 to ensure that the terms are enforceable under applicable law.
- (g) Breach. You agree that failure to comply with these Article 4 Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions will cause irreparable harm to us and/or other Casiola Business franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole reme
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees agree that the terms of the franchise agreement are reasonable in both time and geographic scope. Franchisees also acknowledge having sufficient resources, business experience, and opportunities to earn a living while adhering to the agreement's terms.
Furthermore, the agreement stipulates that franchisees waive any right to challenge the terms as overly broad, unreasonable, or unenforceable. However, Casiola retains the right to unilaterally modify the non-competition terms to ensure enforceability under applicable law. This includes limiting the scope of prohibited activities, narrowing the definition of a competitive business, shortening the restricted period, or reducing the geographic scope of the restricted territory.
The Casiola franchise agreement also states that failure to comply with the non-competition covenants will cause irreparable harm to Casiola and its franchisees, entitling Casiola to injunctive relief. While Casiola may seek injunctive relief without bond (though upon due notice), if a court requires a bond, the parties agree that it will not exceed $1,000. These remedies are not exclusive and can be combined with others available under the agreement or at law.