Does the Coffee News franchise agreement state that the parties are familiar with the operations of 'Coffee News' Franchises?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties to this Agreement agree and acknowledge that they are familiar with the present and proposed operations of "Coffee News" Franchises and believe that the restrictive covenants in this Agreement are reasonable with respect to their subject matter, duration, and geographical application.
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 franchise agreement states that both parties, the franchisor and franchisee, acknowledge they are familiar with the present and proposed operations of Coffee News franchises. They also believe that the restrictive covenants within the agreement are reasonable in terms of their subject matter, duration, and geographical scope. This indicates that franchisees should have a clear understanding of what is expected of them and the operational aspects of the franchise before entering into the agreement.
This acknowledgment suggests that prospective franchisees should conduct thorough due diligence to familiarize themselves with the Coffee News business model, operations, and expectations before signing the agreement. This may involve reviewing the Franchise Disclosure Document, speaking with existing franchisees, and understanding the market in which they plan to operate their Coffee News franchise.
The agreement also specifies that even if a court finds any restrictive covenants unreasonable, it should modify them to be reasonable rather than invalidate them entirely, except for the payment terms, which the parties do not intend to be modified by a court. This clause aims to ensure the enforceability of the agreement while protecting both parties' interests within reasonable and legally sound boundaries.