Does the Cinch I.T. franchise agreement specify that each covenant is independent of other provisions?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4 The Parties agree that each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
If any or all portions of the covenants in this Section 11 are held unreasonable or unenforceable by a court or agency having valid jurisdiction in an unappealed final decision to which Franchisor is a party, You expressly
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, the franchise agreement specifies that each covenant within the agreement is considered independent of any other covenant or provision. This means that if one part of the agreement is found to be unenforceable, it does not automatically invalidate the rest of the agreement. This is a fairly standard clause in franchise agreements.
Specifically, the agreement states that if any portion of the covenants related to post-termination restrictions are deemed unreasonable or unenforceable by a court, the franchisee expressly agrees to be bound by a lesser covenant that imposes the maximum duty permitted by law. This ensures that Cinch I.T. can still enforce some level of restriction, even if the original terms are deemed too broad.
This clause protects Cinch I.T.'s interests by ensuring that franchisees are still bound by the maximum enforceable restrictions, even if the original terms are challenged. For a prospective franchisee, this means understanding that even if certain aspects of the non-compete or other restrictive covenants seem overly broad, they may still be subject to some form of restriction deemed legally permissible. Franchisees should seek legal counsel to fully understand the implications of these covenants and how they might be applied in their specific circumstances.