What page in the Coffee News FDD discusses Enforceability and Arbitration?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
remainder of the Agreement shall continue in full force or effect as if the Agreement had been signed with the invalid portion so modified or eliminated.
16.6 Exhibits and Schedules. All exhibits and schedules attached hereto are incorporated by reference in the appropriate paragraph and form a part of the Agreement.
The parties to this Agreement understand and agree Enforceability. 16.7 that, if any portion of the restrictive covenants set forth in this Agreement is held to be unreasonable, arbitrary, or against public policy, then that portion of those covenants shall be considered divisible as to time and region.
The parties to this Agreement agree that if any court or competent jurisdiction determines that the specified time period or the specified region of application of any covenant is unreasonable, arbitrary, or against public policy, then a lesser time period, geographical area or both, that is determined to be reasonable, non-arbitrary, and not against public policy, may be enforced against the parties hereto.
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.
- Arbitration.
Except for obtaining injunctive relief by either party against actual or threatened conduct that would cause irreparable harm to that party, all controversies, disputes or claims arising under this Agreement between Franchisor and Franchisee shall be submitted for arbitration to the Office of the American Arbitration Association nearest to Franchisor on demand of either Franchisor or Franchisee.
Such arbitration proceedings shall be conducted in Bangor, Maine.
Except as otherwise provided in this Agreement, such claims shall be heard by one arbitrator in accordance with the then Current Commercial Arbitration Rules of the American Arbitration The administrative cost of the arbitration, including the cost of the Association. arbitrator, shall be borne equally by the parties.
Each party shall be responsible for the payment of its own attorneys' fees and expenses.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News FDD, page 55 contains information regarding enforceability and arbitration within the franchise agreement. The FDD states that if any part of the restrictive covenants in the agreement is deemed unreasonable or against public policy, it will be considered divisible by time and region. This means a court can modify the time period or geographical area of the covenant to make it reasonable and enforceable, but the payment terms cannot be modified by a court.
The FDD also outlines the arbitration process for resolving disputes between Coffee News and the franchisee. Except for actions seeking injunctive relief to prevent irreparable harm, all disputes will be submitted to arbitration through the American Arbitration Association nearest to Coffee News' location. The arbitration proceedings will take place in Bangor, Maine, and be conducted by one arbitrator following the Commercial Arbitration Rules of the American Arbitration Association.
The administrative costs of the arbitration, including the arbitrator's fees, will be shared equally between Coffee News and the franchisee. Each party is responsible for covering their own attorney's fees and expenses related to the arbitration. This section clarifies the process for resolving disagreements and what financial responsibilities each party bears during arbitration.