If a part of the Fitstop Franchise Agreement is deemed invalid, what happens to the rest of the agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- ©2024 Fitstop USA, Inc. 20.7 If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid, illegal, unconstitutional, or unenforceable, such portion shall be deemed severed from this
Agreement and the remaining parts shall remain in full force and effect as if no invalid or unenforceable provisions had been part of this Agreement.
- 20.8 In the event that any material provision of this Agreement shall be stricken or declared invalid, we reserve the right to terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a court deems any part of the Franchise Agreement invalid, illegal, unconstitutional, or unenforceable, that specific portion will be removed from the agreement. However, the remaining parts of the agreement will still be valid and remain in full effect. It will be as if the invalid or unenforceable provisions were never part of the agreement.
However, Fitstop reserves the right to terminate the agreement if any material provision is stricken or declared invalid. This clause protects Fitstop in case a key part of the agreement, critical to their franchise operations, is invalidated.
This is a fairly standard clause in franchise agreements. It aims to preserve the overall contract while allowing for the removal of specific problematic sections. However, the added right for Fitstop to terminate the agreement if a material provision is affected provides them with an additional layer of protection.