Does the Focus Cfo franchise agreement state 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 a court finds any part of the agreement to be invalid or unenforceable, the rest of the agreement will remain in effect. This is a standard provision in franchise agreements to protect the overall enforceability of the contract.
Specifically, the Focus Cfo franchise agreement states that each section, paragraph, term, and provision is severable. If a court rules that any part of the agreement is invalid due to conflict with current or future laws, the remaining provisions will still be binding. This ensures that the entire agreement does not become void due to one unenforceable clause.
Furthermore, the Focus Cfo agreement addresses situations where a covenant restricting competitive activity is deemed unenforceable. In such cases, the franchisee agrees that the covenant will be enforced to the fullest extent permissible under applicable laws, potentially modifying the scope, activity, or time frame to make it enforceable. This demonstrates an intent to maintain the enforceability of the agreement's key provisions to the greatest extent possible.