Is the Extreme Art Studio Owners Agreement affected by the validity of its terms?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Each section of this Agreement, including each subsection and portion thereof, is severable. If any section, subsection, or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection, or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms reasonable in scope, duration, and geographic area.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the franchise agreement contains a severability clause. This means that if any part of the agreement is deemed unenforceable, it does not invalidate the entire agreement.
Specifically, if a section, subsection, or portion of the agreement is unenforceable, the remaining parts of the agreement will still be valid and enforceable. The document also states that the courts may impose limitations on the terms of the agreement to make them enforceable. This could involve modifying the scope, duration, or geographic area of certain terms.
This provision offers a degree of protection for both Extreme Art Studio and the franchisee. It ensures that minor issues with specific clauses do not jeopardize the entire agreement. However, prospective franchisees should be aware that the franchisor may modify the agreement to ensure enforceability, potentially altering the original terms.