Under what conditions can Annex Brands unilaterally reduce the scope of the post-term non-competition covenant?

According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands has the authority to unilaterally reduce the scope of the post-term non-competition covenant. Specifically, Annex Brands may, at its sole discretion, reduce the scope of any part of the post-term non-competition covenant to something less than the restriction provided in Section 3 of the agreement.

For a prospective franchisee, this means that even though the franchise agreement outlines specific post-term non-competition restrictions, Annex Brands retains the right to lessen those restrictions. This could potentially benefit a franchisee by allowing them more flexibility in their future business endeavors after the franchise agreement concludes.

The franchisee agrees to comply with any such reduced restriction upon receiving written notice from Annex Brands. This indicates that any reduction in the non-compete terms will be formally communicated in writing, ensuring the franchisee is aware of the modified obligations. It is important for franchisees to carefully review any written notices from Annex Brands regarding changes to the non-competition agreement to fully understand their post-term obligations.