If a provision of the Exit agreement is invalid, what happens to the rest of the agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If any provision of this Agreement is invalid or unenforceable, the remainder of this Agreement shall not be affected and each provision of this Agreement shall be valid to the fullest extent permitted by law and be independent of every other provision of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the agreement contains a severability clause. This means that if any specific part or provision of the franchise agreement is deemed invalid or unenforceable, it does not automatically invalidate the entire agreement.
Instead, the remainder of the agreement will remain in full effect. Each provision of the agreement will be considered valid and independent to the fullest extent permitted by law. This ensures that as much of the original agreement as possible is upheld, even if a particular clause is found to be problematic.
This type of clause is fairly standard in franchise agreements. It protects both the franchisee and Exit by ensuring that minor issues do not cause the entire agreement to collapse. However, it's important for a prospective franchisee to understand which laws govern the agreement and what recourse they have if they believe a provision is unfair or unenforceable.