If a provision in the Crawlspace Medic agreement is declared invalid, what is the extent of the invalidity?
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 a court finds the non-compete restrictions unreasonable, the time or geographic scope of the restriction will be reduced. The reduction will be made by decreasing the number of months or eliminating a portion of the geographic area, or both. This ensures the restrictions are enforceable to the extent deemed reasonable by the court.
Crawlspace Medic also retains the right to modify the scope of any covenant within the agreement, without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the covenant as modified.
This clause provides Crawlspace Medic with flexibility in enforcing the non-compete agreement. It also protects the brand's interests while ensuring the restrictions are fair and reasonable for the franchisee. Prospective franchisees should understand that the non-compete terms can be adjusted during the agreement, potentially impacting their future business activities after the franchise term.