Does the Focus Cfo franchise agreement specify that each section, paragraph, term, and provision is severable?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.8.
Severability, Modification and Substitution of Valid Provisions.
Except as expressly provided to the contrary in this Agreement, each section, paragraph, term, and
provision of this Agreement is severable, and if, for any reason, any part is held to be invalid or contrary to or in conflict with any applicable present or future law or regulation in a final, unappealable ruling issued by any court, agency, or tribunal with competent jurisdiction, that ruling will not impair the operation of, or otherwise affect, any other provisions of this Agreement, which will continue to have full force and effect and bind the parties. If any covenant which restricts competitive activity is deemed unenforceable by virtue of its scope in terms of area, business activity prohibited, and/or length of time, but would be enforceable if modified, Franchisee agrees that the covenant will be enforced to the fullest extent permissible under the laws and public policies applied in the jurisdiction whose law determines the covenant's validity.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the franchise agreement includes a severability clause. This means that if any part of the agreement is deemed invalid or unenforceable by a court, the remaining provisions will still remain in effect. Specifically, each section, paragraph, term, and provision of the agreement is considered severable.
This clause protects the overall validity of the Focus Cfo franchise agreement. If a specific clause is found to be illegal or unenforceable, it will be removed or modified, but the rest of the agreement will continue to bind both Focus Cfo and the franchisee. This prevents the entire agreement from being invalidated due to a single problematic provision.
The agreement also addresses situations where a covenant restricting competitive activity is deemed unenforceable due to its scope (area, business activity, or length of time). In such cases, the Focus Cfo franchisee agrees that the covenant will be enforced to the fullest extent permissible under applicable laws and public policies. This ensures that Focus Cfo's interests are protected as much as possible, even if the original restriction is deemed too broad. This type of clause is common in franchise agreements to protect the franchisor's brand and system standards.