If Annex Brands reduces the scope of a term in the agreement, when does the change take effect?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Reduction in Scope of Covenant.
You agree that we or Franchisor may, in our sole discretion, reduce (but never increase) the scope of any term or subpart of any term in this Agreement without your consent, effective immediately on written notice from us or Franchisor, and you agree that you will promptly comply with any term or subpart so modified, that will be fully enforceable notwithstanding any other term or subpart of this Agreement.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands or the Franchisor can reduce the scope of any term or subpart of any term in the agreement without the franchisee's consent. This change becomes effective immediately upon written notice from Annex Brands or the Franchisor.
This means that Annex Brands has the power to modify certain aspects of the franchise agreement to be less restrictive for the franchisee. However, Annex Brands is not allowed to increase the scope of any term.
As a prospective franchisee, it is important to understand the implications of this clause. While the franchisor can only reduce the scope of a term, franchisees should carefully consider how such changes might affect their business operations and obligations. It would be prudent to seek legal counsel to fully understand the protections and limitations this clause provides.