What does the Focus Cfo franchisee waive regarding the restrictive covenants?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the restrictive covenants contained in this Section 13 are essential elements of this Agreement and that without their inclusion Focus CFO would not have entered into this Agreement.
Franchisee acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Focus CFO, the Focus CFO System and the Focus CFO Marks and Franchisee waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable.
If any such provision, or any part thereof, is held to be unenforceable because of the duration of such provision or the area covered thereby, the parties agree that the court making such determination will have the power to reduce the duration and/or area of such
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the franchisee acknowledges that the restrictive covenants within the franchise agreement are essential and that Focus Cfo would not have entered into the agreement without them. The franchisee agrees that all terms, including the restrictive covenants, are fair, reasonable, and necessary to protect Focus Cfo, its system, and its marks.
Specifically, the Focus Cfo franchisee waives any right to challenge these restrictions, agreeing not to argue that they are overly broad, unreasonable, or otherwise unenforceable. This means the franchisee accepts the limitations placed on their activities during and after the franchise term, such as non-competition and non-solicitation clauses, and agrees not to legally contest these limitations.
Furthermore, the franchisee agrees that if a court finds any provision unenforceable due to its duration or geographic scope, the court should modify the provision to make it enforceable to the fullest extent permissible under applicable laws. This demonstrates the franchisee's commitment to upholding the restrictive covenants and allowing for judicial adjustments rather than complete invalidation.