Under what condition might the 'Restricted Territory' for an Itan franchisee be reduced?

According to Itan's 2025 Franchise Disclosure Document, the standard 'Restricted Territory' is a 10-mile radius around the franchisee's salon and other Itan salons operating or under construction when the post-term restricted period begins. However, this territory can be reduced under a specific condition.

If a court of competent jurisdiction determines that the initially defined 'Restricted Territory' is too broad to be enforceable, then the 'Restricted Territory' will be reduced. In this case, the 'Restricted Territory' will then mean the geographic area within a 10-mile radius from the franchisee's salon only, excluding the other Itan salons.

This condition provides a safeguard for the Itan franchisee, ensuring that the non-compete agreement is reasonable and enforceable. It acknowledges that overly broad restrictions may not be legally upheld, and provides an alternative definition that is more likely to be considered fair and reasonable by a court. This is a fairly standard clause in franchise agreements, as franchisors need to balance protecting their brand with ensuring franchisees aren't unduly restricted after leaving the system.