Can Bath Tune Up reduce the scope of any covenant without the franchisee's consent?
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 authority to modify the scope of any covenant without obtaining the franchisee's consent. The FDD specifies that such modifications become effective immediately upon notification to the franchisee.
This clause means that Bath Tune Up franchisees must comply with any reduced covenant scope that Bath Tune Up implements. The franchisee is bound by the modified covenant and must adhere to it.
This condition is generally included to allow the franchisor flexibility to adapt the franchise agreement to changing market conditions or legal requirements. While this benefits the franchisor, it introduces a degree of uncertainty for the franchisee, who must be prepared to adjust their business practices to comply with any modifications Bath Tune Up deems necessary.