If a covenant restricting competitive activity in the Crisp & Green franchise agreement is deemed unenforceable, what will happen?

According to the 2024 Crisp & Green Franchise Disclosure Document, if a covenant restricting competitive activity is deemed unenforceable due to its scope, geographic area, type of prohibited business activity, or length of time, Crisp & Green and the franchisee agree that it will be enforced to the fullest extent permissible under applicable law and public policy. This means that a court would likely modify the covenant to make it enforceable, rather than striking it down completely.

This clause aims to preserve the enforceability of non-compete agreements to the greatest extent possible. Instead of voiding the entire restriction, the agreement allows a court to reduce the scope, geographic area, or time frame to make it legally sound. This is a common practice in franchising, as franchisors have a legitimate interest in protecting their brand and trade secrets.

For a prospective Crisp & Green franchisee, this means that even if a specific part of the non-compete agreement seems overly broad, it could still be enforced in a more limited form. Franchisees should be aware of this clause and understand that they may still be bound by some form of non-compete restriction, even if the original terms are deemed unenforceable. It is advisable to seek legal counsel to fully understand the implications of these covenants within the franchise agreement.