Does the Coffee News agreement state that the parties believe the restrictive covenants are reasonable?

According to the 2025 Coffee News Franchise Disclosure Document, the agreement specifies that both parties involved acknowledge and agree that they are well-informed about the current and planned operations of Coffee News franchises. Furthermore, they believe that the restrictive covenants included in the agreement are reasonable in terms of their subject matter, duration, and geographical application. This indicates that both Coffee News and the franchisee are entering the agreement with the understanding that the restrictions placed on the franchisee's activities are fair and justified.

This clause is important for prospective franchisees as it confirms that they have considered the limitations imposed by the franchise agreement and find them acceptable. However, the agreement also addresses the possibility that a court might find some of these restrictions unreasonable. To mitigate this, the agreement states that if any portion of the restrictive covenants is deemed unreasonable, arbitrary, or against public policy, that portion should be considered divisible in terms of time and region. This means that a court could modify the scope or duration of the restriction to make it enforceable, rather than invalidating the entire covenant.

Additionally, the Coffee News agreement specifies that if a court determines that the specified time period or geographical area of any covenant is unreasonable, arbitrary, or against public policy, a lesser time period or geographical area may be enforced. This provision ensures that the restrictive covenants remain as enforceable as possible, while still adhering to legal standards of reasonableness. However, the agreement explicitly states that while a court may modify the time period or geographical area, the parties do not intend for a court to modify the payment terms set forth in the agreement.