If an invalid provision of the Coffee News franchise agreement cannot be modified, what happens to it?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If any provision of this Schedule B is held to be invalid by a court of competent jurisdiction, then the remaining provisions shall nevertheless remain in full force and effect.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, if a provision within Schedule B of the agreement is deemed invalid by a court, the remaining provisions of Schedule B will remain in effect. This ensures that as much of the agreement as possible is upheld, even if specific parts are unenforceable. This clause applies specifically to Schedule B of the agreement.
This clause is a fairly standard 'severability' provision in franchise agreements. It aims to preserve the overall contract despite potential issues with individual clauses. Without such a provision, the entire agreement could be at risk if one part is found to be invalid, which could create significant legal and operational uncertainty for both Coffee News and the franchisee.
For a prospective Coffee News franchisee, this means that even if a particular term in Schedule B is later found to be unenforceable, the rest of the agreement, including the franchise grant and other obligations, would likely remain valid. However, it is important to note that this provision applies specifically to Schedule B, and other parts of the agreement may have different severability clauses or be subject to different legal interpretations. Franchisees should seek legal counsel to fully understand the implications of this and other clauses in the franchise agreement.