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

According to the 2025 Coffee News Franchise Disclosure Document, the franchise agreement includes an acknowledgement from both parties regarding the reasonableness of the restrictive covenants. Specifically, the agreement states that both Coffee News and the franchisee are familiar with the operations of Coffee News franchises and believe the restrictive covenants are reasonable in terms of their subject matter, duration, and geographical application. This indicates that franchisees are expected to understand and agree to the limitations placed on them by the franchise agreement, such as non-compete clauses, before entering into the agreement.

However, the agreement also addresses the possibility that a court might find a portion of these restrictive covenants to be unreasonable. In such cases, the agreement stipulates that the unreasonable portion should be considered divisible in terms of time and region. This means that if a specific time period or geographical area is deemed unreasonable, a lesser time period or smaller geographical area that is considered reasonable, non-arbitrary, and not against public policy may be enforced. This provision aims to ensure that the restrictive covenants are enforceable to the fullest extent possible while remaining fair and reasonable.

It is important to note that while the parties agree that a court can modify the time period or geographical area of the restrictive covenants, the agreement explicitly states that the parties do not intend for a court to modify the payment terms. This distinction highlights the importance Coffee News places on the financial aspects of the franchise agreement and suggests that these terms are considered non-negotiable. Prospective franchisees should carefully review all restrictive covenants and payment terms with legal counsel to fully understand their obligations and rights under the Coffee News franchise agreement.