Does the Checkers franchise agreement specify that every part of the agreement is considered severable?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.01 Severability and Substitution of Provisions. Every part of this Agreement shall be considered severable. If for any reason any part of this Agreement is held to be invalid, that determination shall not impair the other parts of this Agreement. If any covenant herein which restricts competitive activity is deemed unenforceable by virtue of its scope in terms of geographical area, type of business activity prohibited and/or length of time, but could be
rendered enforceable by reducing any part or all of it, you and we agree that it will be enforced to the fullest extent permissible under applicable law and public policy.
If any applicable law requires a greater prior notice of the termination than is required hereunder, a different standard of "good cause" to terminate this Agreement or the taking of some other action not required hereunder, the prior notice, the "good cause" standard and/or the other action required by such law shall be substituted for the comparable provisions hereof.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, the franchise agreement specifies that every part of the agreement is considered severable. This means that if a court finds any part of the agreement to be invalid, the remaining parts of the agreement will still be in effect.
This provision protects the enforceability of the overall agreement. If one clause is deemed unenforceable, the entire agreement does not necessarily fall apart. This is particularly important in franchise agreements, which are often complex and contain numerous provisions.
Additionally, the agreement states that if any covenant restricting competitive activity is deemed unenforceable due to its scope, the parties agree that it will be enforced to the fullest extent permissible under applicable law and public policy. This ensures that Checkers will attempt to enforce the covenant to the greatest degree allowed, even if the original scope is deemed too broad. If any applicable law requires a greater prior notice of termination or a different standard of "good cause" to terminate the agreement, those legal requirements will be substituted for the comparable provisions in the agreement.