Does the Focus Cfo franchise agreement state that each section is severable?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
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 contains a severability clause. This means that if a court rules that any part of the agreement is invalid or conflicts with the law, the remaining provisions of the agreement will still be valid and enforceable. This is a fairly standard clause in franchise agreements.
The severability clause ensures that the entire agreement is not invalidated due to one unenforceable provision. This protects both Focus Cfo and the franchisee by maintaining the overall integrity of the contract. The clause specifies that if a restriction on competitive activity is deemed unenforceable because of its scope (area, business activity, or time length), the franchisee agrees that the covenant will be enforced to the fullest extent permissible by law.
For a prospective Focus Cfo franchisee, this clause offers some assurance that the core of the franchise agreement will remain intact even if specific parts are challenged and found to be unenforceable. It's important to understand the implications of each section of the agreement, but the severability clause provides a degree of protection against unforeseen legal challenges affecting the entire contract.