Does Mr. Sandless conceding to a constructive amendment mean they agree that the grounds for termination in the agreement do not constitute 'good cause'?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary contained in this Article, if any valid, applicable law or regulation of a competent governmental authority having jurisdiction over this franchise and the parties hereto shall limit our rights of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement is deemed amended to satisfy the minimum notice periods or restrictions upon such termination required by such laws and regulations; provided, however, that such constructive amendment shall not be deemed a concession by us that the grounds for termination set forth in this Agreement do not constitute "good cause" for termination within the meaning ascribed to that term
by any applicable law or regulation. We shall not be precluded from contesting the validity, enforceability or application of such laws or regulations in any action, hearing or proceeding relating to this Agreement or the termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchise agreement contains a provision addressing amendments required by applicable law. Specifically, if any law or regulation limits Mr. Sandless's termination rights or requires longer notice periods, the agreement is constructively amended to meet those minimum requirements.
However, Mr. Sandless explicitly states that such a constructive amendment does not imply a concession that the original grounds for termination in the agreement lack "good cause." This means that even if a law forces Mr. Sandless to provide more notice or adhere to stricter termination rules, they still maintain that their initial reasons for termination are valid and justified.
Furthermore, Mr. Sandless retains the right to challenge the validity, enforceability, or application of any laws or regulations affecting the franchise agreement or its termination. This protects Mr. Sandless's position and ensures they can contest any legal challenges to their termination decisions, regardless of constructive amendments made to comply with local laws.