Under what condition can Anago modify the covenants in ARTICLE without the Subfranchisor's consent?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor agrees that Franchisor has the right, in its reasonable discretion, to reduce the scope of any covenants in this ARTICLE without Subfranchisor's consent, effective immediately upon receipt by Subfranchisor of written notice. Subfranchisor agrees that he or she will immediately comply with any covenant as so modified, which is fully enforceable.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the right to modify the covenants in the agreement without the subfranchisor's consent under specific conditions. Anago can reduce the scope of any covenants in the specified ARTICLE at its reasonable discretion.
To do so, Anago must provide the subfranchisor with written notice of the modification. The modification becomes effective immediately upon the subfranchisor's receipt of this notice.
The subfranchisor is then obligated to comply with the covenant as modified and agrees that the modified covenant is fully enforceable. This clause gives Anago flexibility in adjusting the subfranchise agreement's covenants as it deems necessary, provided they act reasonably and give written notice.