Does Beverly Anns Cookie need the Owner's consent to reduce the scope of the non-competition covenants?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right, in our sole discretion, to unilaterally reduce the scope of all or part of any Brand Covenant without your consent (before or after any dispute arises), effective when we give you written notice of this reduction and you agree to comply with any modifications to the Brand Covenants .
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Ann's Cookie has the right to unilaterally reduce the scope of the non-competition covenants without the franchisee's consent. This means that Beverly Ann's Cookie can modify the terms of the non-compete agreement at their discretion, without needing to obtain approval from the franchisee or its owners.
This right extends both before and after any dispute arises, providing Beverly Ann's Cookie with significant flexibility in enforcing or modifying the non-compete provisions. The reduction becomes effective once Beverly Ann's Cookie provides written notice to the franchisee, and the franchisee is then obligated to comply with the modified terms.
For a prospective franchisee, this clause means that the non-compete obligations could change during the term of the franchise agreement. While the franchisee initially agrees to certain restrictions, Beverly Ann's Cookie retains the power to lessen those restrictions, potentially impacting the franchisee's future business activities or opportunities. It is important for franchisees to understand that the non-compete terms are not fixed and can be altered by Beverly Ann's Cookie at any time with written notice.