Under what circumstances will a term or condition of the Dryer Vent Squad agreement not be given effect?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
"Restricted Territory" refers to and means the entire geographic area within and comprising: (a) Franchisee's Operating Territory; (b) a 25 mile radius surrounding Franchisee's Operating Territory; and (c) all other operating territories for Dryer Vent Squad Businesses that are operated and/or under development by Franchisor or other Dryer Vent Squad Business franchisees as of the Effective Date of this Agreement and those that are in operation during all or any part of the Post-Term Restricted Period. However, if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within and comprising Franchisee's Operating Territory plus a 25 mile radius surrounding Franchisee's Operating Territory.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, a court of competent jurisdiction may determine that the defined "Restricted Territory" is too broad to be enforceable. In this case, the Restricted Territory will be redefined.
The standard definition of "Restricted Territory" includes the franchisee's operating territory, a 25-mile radius around it, and all other operating territories for Dryer Vent Squad businesses operated by the franchisor or other franchisees, both currently and during any part of the post-term restricted period.
However, if a court finds this definition too broad, the Restricted Territory will then be limited to the franchisee's operating territory plus a 25-mile radius surrounding it. This adjustment ensures the enforceability of the restriction while still protecting Dryer Vent Squad's interests.