If a provision in the Crawlspace Medic agreement is declared invalid, what is the extent of the invalidation?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.5 Reduction of Time or Scope.
If the period of time or the geographic scope specified above, should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable.
In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Article 8 or any portion thereof, without Developer's consent, effective immediately upon receipt by Developer of written notice thereof, and Developer agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, if any of the non-compete restrictions regarding time or geographic scope are deemed unreasonable, the restrictions will be reduced to what is considered reasonable. Specifically, the period of time will be reduced by a number of months, or the geographic scope will be reduced by eliminating a portion of it, or both. This ensures the restrictions are enforceable to the extent deemed reasonable by a court.
Crawlspace Medic also retains the right to modify the scope of any covenant within Article 8 of the agreement, which pertains to non-competition, without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee is then obligated to comply with the covenant as modified.
This clause provides Crawlspace Medic with flexibility in enforcing non-compete agreements, allowing adjustments to be made to ensure enforceability or to address specific situations. Prospective franchisees should understand that the non-compete terms can be altered by Crawlspace Medic during the agreement, and they should consider the potential impact of such changes on their future business activities.