If Bath Tune Up modifies a covenant, is the franchisee obligated to comply?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee understands and acknowledges that Franchisor may, in its sole discretion, reduce the scope of any covenant in this section without Franchisee's consent, effective immediately upon notice to Franchisee. Franchisee agrees that any covenant as so modified will be fully enforceable, and Franchisee covenants that it will comply with the modified covenant.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, Bath Tune Up has the right to modify certain covenants within the franchise agreement, and franchisees are obligated to comply with these changes. Specifically, Bath Tune Up may reduce the scope of any covenant without the franchisee's consent, and such modifications become effective immediately upon notice.
This means that a Bath Tune Up franchisee must adhere to the modified covenant and acknowledges its full enforceability. The franchisee is bound by the changes Bath Tune Up makes and must adjust their business practices accordingly. This clause provides Bath Tune Up with considerable flexibility to adapt the franchise agreement to changing market conditions or business strategies.
This condition is important for prospective franchisees to consider, as it gives Bath Tune Up the power to unilaterally alter the terms of the agreement within the bounds of the covenant. While the FDD does not specify the types of covenants that may be modified, it is crucial for potential franchisees to understand that such modifications are possible and that compliance is mandatory.