Can Annex Brands unilaterally reduce the scope of the post-term non-competition covenant?

According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands has the right to unilaterally reduce the scope of the post-term non-competition covenant. Specifically, Annex Brands may reduce the scope of any part of the post-term non-competition covenant to something less than the restriction outlined in Section 3 of the agreement.

For a prospective Annex Brands franchisee, this means that while the initial franchise agreement may contain certain post-term non-competition restrictions, Annex Brands retains the flexibility to lessen those restrictions at any time. This could potentially benefit a franchisee by allowing them more freedom to operate a similar business or engage with former customers or corporate accounts sooner than initially agreed upon.

However, the franchisee must comply with any such reduced restriction upon receiving written notice from Annex Brands. This implies that Annex Brands is not obligated to reduce the scope, and the franchisee should be prepared to adhere to the original, potentially broader restrictions if no such reduction is offered. It is important for franchisees to stay informed of any written notices from Annex Brands regarding changes to the non-competition covenant to ensure compliance.