Does Beverly Anns Cookie have the right 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 Anns Cookie has the right to reduce the scope of the non-competition covenants. Beverly Ann's Cookie, in its sole discretion, can unilaterally reduce the scope of all or part of any Brand Covenant without the franchisee's consent. This reduction can occur before or after a dispute arises. The reduction becomes effective when Beverly Ann's Cookie provides written notice to the franchisee, and the franchisee agrees to comply with any modifications to the Brand Covenants.
This provision provides Beverly Ann's Cookie with flexibility in enforcing non-competition agreements. It allows them to adjust the restrictions based on specific circumstances or changes in the market. For a potential franchisee, this means the non-compete terms could be lessened, potentially allowing more freedom to engage in related business activities than initially agreed upon.
However, it's important to note that while Beverly Ann's Cookie can reduce the scope, the franchisee must still comply with any modifications to the Brand Covenants once notified in writing. This clause ensures that Beverly Ann's Cookie can adapt the non-compete terms as needed while still maintaining some level of protection against competition from former franchisees. Franchisees should carefully consider this aspect and understand the potential implications of such modifications on their future business endeavors.