What is the role of the court in determining the enforceability of restrictive covenants in the Focus Cfo agreement?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
nsee or franchisee thereof through any means of communication, including but not limited to the Internet, blog posts, reviews or social media platforms.
- 13.6. If any provision of this Section 13, as applied to any party or to any circumstances, is adjudged by a court to be invalid or unenforceable, the same will in no way affect any other provision of this Section 13 or any other part of this Agreement, the application of such provision in any other circumstances, or the validity or enforceability of this Agreement.
- 13.7.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to the 2025 Focus Cfo Franchise Disclosure Document, the court plays a specific role in determining the enforceability of restrictive covenants within the franchise agreement. If a court finds any provision of Section 13 (which likely contains the restrictive covenants) to be invalid or unenforceable, this will not affect the validity of the other provisions in Section 13 or the rest of the agreement.
Specifically, if a restrictive covenant is deemed unenforceable due to its duration or geographic scope, the agreement states that the court making that determination has the power to reduce the duration or area of the restriction. This means that rather than striking down the covenant entirely, the court can modify it to make it enforceable.
This clause aims to ensure that the restrictive covenants are enforced to the fullest extent permissible under applicable laws and public policies. By allowing the court to modify the terms, Focus Cfo seeks to maintain some level of protection against franchisees competing unfairly, even if the original terms are deemed too broad. Franchisees should be aware that they are agreeing to allow a court to rewrite the terms of their non-compete agreement within certain limits.