Does the Expense Reduction Analysts agreement allow for judicial modification of the non-compete provisions?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) It is the parties' intent that the provisions of this Section 28.6 be judicially enforced to the fullest extent permissible under applicable law.
Accordingly, the parties agree that any reduction in scope or modification of any part of the non-competition provisions contained herein shall not render any other part unenforceable.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, the franchise agreement explicitly anticipates and allows for judicial modification of the non-competition provisions. The agreement states that it is the intent of both parties that the non-compete terms be enforced to the fullest extent permissible by law.
Specifically, the Expense Reduction Analysts agreement includes a clause stating that if any part of the non-competition provisions is reduced in scope or modified, it will not render any other part of the non-compete unenforceable. This suggests that a court can adjust the terms of the non-compete (such as geographic scope or time period) without invalidating the entire clause.
This is a benefit for a prospective Expense Reduction Analysts franchisee because it means that if the non-compete agreement is ever challenged in court, there is a mechanism in place to allow for a more reasonable and enforceable restriction, rather than having the entire non-compete thrown out. This provides some level of predictability and protection for both the franchisee and Expense Reduction Analysts.