What happens if a provision of the Crave Cookies franchise agreement is deemed unenforceable?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.7 Severability. The parties intend that (i) if any provision of this Agreement is held by an arbitrator or court to be unenforceable, then that provision be modified to the minimum extent necessary to make it enforceable, unless that modification is not permitted by law, in which case that provision will be disregarded, and (ii) if an unenforceable provision is modified or disregarded, then the rest of this Agreement will remain in effect as written.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the franchise agreement contains a severability clause addressing the scenario where a provision is deemed unenforceable. The intent of Crave Cookies is that if any provision is deemed unenforceable by an arbitrator or court, the provision should be modified to the minimum extent necessary to make it enforceable. However, if the modification is not permitted by law, the provision will be disregarded.
If an unenforceable provision is either modified or disregarded, the remainder of the franchise agreement will remain in full effect as written. This ensures that as much of the original agreement as possible is upheld and that the entire agreement is not invalidated due to a single unenforceable clause.
This type of severability clause is standard in franchise agreements. It protects the interests of both Crave Cookies and the franchisee by maintaining the overall integrity of the contract while addressing specific legal concerns. Prospective franchisees should understand that while some terms might be altered or removed if deemed unenforceable, the core obligations and rights outlined in the agreement will generally remain in place.