What does a Chop5 Salad Kitchen franchisee agree to regarding the reasonableness of the covenants in §3?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Covenants Reasonable.
You agree that: (i) the covenants in §3 are reasonable both in duration and geographic scope; and (ii) you have sufficient resources, business experience and opportunities to earn an adequate living while complying with these covenants.
Although you and we both believe the covenants in §3 are reasonable we may, upon written notice to you, unilaterally modify the brand protection covenants in §3 of this Agreement by limiting the scope of the Prohibited Activities, narrowing the definition of a Competing 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 §3 of this Agreement to ensure the covenants are enforceable under applicable law.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen Franchise Disclosure Document, franchisees acknowledge the reasonableness of the covenants outlined in §3 of the franchise agreement. Specifically, franchisees agree that the covenants are reasonable in both their duration and geographic scope.
Furthermore, the franchisee acknowledges having sufficient resources, business experience, and opportunities to sustain an adequate living while adhering to these covenants. This acknowledgement is significant because it indicates that the franchisee has considered the restrictions and obligations imposed by the franchise agreement and believes they can still operate a profitable business.
Chop5 Salad Kitchen retains the right to modify the brand protection covenants in §3 by providing written notice to the franchisee. These modifications may include limiting prohibited activities, narrowing the definition of a competing business, shortening the restricted period, reducing the geographic scope of the restricted territory, or reducing the scope of any other covenant. This unilateral modification clause provides Chop5 Salad Kitchen with the flexibility to adapt the covenants to ensure they remain enforceable under applicable law.