Can the time period of the non-compete agreement for Kidokinetics be reduced if deemed unreasonable?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- d. If the period of time or the geographic scope specified in Section 2.b. above should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable. In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement or any portion thereof, without Covenantor's or Franchisee's consent, effective immediately upon receipt by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the non-compete agreement's time period or geographic scope can be reduced if deemed unreasonable by a court. Specifically, if a court finds the specified time or geographic scope unreasonable, the time will be reduced by months, or the geographic scope will be reduced by eliminating a portion, to make the restrictions enforceable.
Kidokinetics also retains the right to reduce the scope of any covenant in the agreement without the franchisee's consent. This modification becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the modified covenant.
This clause provides a safety net, ensuring that the non-compete terms are fair and enforceable. It protects the Kidokinetics brand while also preventing overly broad restrictions on the franchisee's future activities. Prospective franchisees should be aware of these conditions and understand that the non-compete terms can be adjusted by a court or by Kidokinetics itself.