What happens if a court finds a provision of the Chem Dry agreement to be invalid?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
If any provision of the Agreement is found by a court of competent jurisdiction to be invalid, the court should endeavor to give effect to the parties' intentions as reflected in the provision, and the other provisions of the Agreement remain in full force and effect.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, if a court of competent jurisdiction finds any provision of the agreement to be invalid, the court should try to implement the intentions of the parties as reflected in the provision. The remaining provisions of the agreement will remain in full effect. This clause is intended to preserve as much of the original agreement as possible, even if specific parts are deemed unenforceable. This is a fairly standard severability clause in franchise agreements.
This means that a Chem Dry franchisee is still bound by the remaining terms and conditions outlined in the franchise agreement. It also ensures that the entire agreement isn't voided due to one unenforceable clause. This protects both the franchisee and Chem Dry by maintaining the overall structure of their business relationship.
However, prospective Chem Dry franchisees should be aware of state-specific addenda that may modify this general principle. For example, the Virginia addendum notes that if any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause" under Virginia law, that provision may not be enforceable. Similarly, the Washington addendum indicates that state statutes or court decisions may supersede the franchise agreement in areas like termination and renewal. These state-specific provisions highlight the importance of understanding how local laws can impact the enforceability of the franchise agreement.