Can the arbitrator amend terms from the Coffee News franchise agreement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding that the parties agree that any court of competent jurisdiction may modify the time period or specify geographical area of applicability in this agreement, the parties do not intend that a court be able to modify the payment terms set forth herein.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the parties involved in the agreement do not intend for a court to be able to modify the payment terms outlined in the agreement. However, if any portion of the restrictive covenants is deemed unreasonable, arbitrary, or against public policy, that part will be considered divisible concerning time and region.
Specifically, the agreement states 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 indicates that while certain aspects of the agreement, such as restrictive covenants, can be modified by a court within certain parameters, the payment terms are intended to remain unchanged.
For a prospective Coffee News franchisee, this means that while the agreement allows for some flexibility in terms of restrictive covenants if they are deemed unreasonable, the financial obligations outlined in the agreement are intended to be strictly adhered to. Franchisees should carefully review and understand the payment terms, as they are unlikely to be altered through legal proceedings. This provision aims to provide clarity and stability regarding the financial aspects of the franchise agreement, ensuring that both Coffee News and the franchisee have a clear understanding of their financial commitments.