Can Beverly Anns Cookie extend or modify the Franchisee's obligations without notifying the Beverly Anns Cookie Owners?

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, Beverly Ann's Cookie has the right to unilaterally reduce the scope of any Brand Covenant without the franchisee's consent. This becomes effective once Beverly Ann's Cookie provides written notice to the franchisee, and the franchisee agrees to comply with any modifications to the Brand Covenants. This means that Beverly Ann's Cookie can modify certain obligations, specifically those within the Brand Covenants, by providing written notice to the franchisee.

This clause provides Beverly Ann's Cookie with flexibility in adjusting the Brand Covenants as needed, potentially in response to changing market conditions or business strategies. However, it also places a responsibility on the franchisee to stay informed of any changes communicated through written notice and to comply with those changes. The franchisee should carefully review any such notices and seek clarification if needed to fully understand the implications of the modifications.

The FDD also states that if a Brand Covenant is held unreasonable or unenforceable by a court, the franchisee agrees to be bound by any lesser covenant within the terms of such Brand Covenant that imposes the maximum duty permitted by law. This ensures that even if a specific covenant is deemed unenforceable, the franchisee is still obligated to comply with the maximum duty legally permissible. This highlights the importance of understanding the Brand Covenants and their potential modifications, as they can significantly impact the franchisee's obligations and operations.

It is important for a prospective Beverly Ann's Cookie franchisee to fully understand the implications of these clauses and how they might affect their business. Franchisees should seek legal counsel to fully understand their rights and obligations under the Franchise Agreement, particularly regarding the Brand Covenants and the potential for unilateral modifications by Beverly Ann's Cookie.