Can Beverly Anns Cookie unilaterally reduce the scope of the non-competition covenant?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie has the right to unilaterally reduce the scope of the non-competition covenant without the franchisee's consent. This reduction can occur before or after a dispute arises. The change becomes effective once Beverly Anns Cookie provides written notice to the franchisee, and the franchisee must then comply with the modified covenant. This right extends not only to the franchisee's agreement but also to the non-competition agreements of the franchisee's owners.

This provision offers Beverly Anns Cookie flexibility in enforcing non-compete agreements. It allows them to adjust the restrictions based on specific circumstances or changes in the competitive landscape. For a potential franchisee, this means the initial non-compete terms could be altered during the franchise term, potentially making it easier for the franchisee to operate a similar business after the franchise agreement ends.

However, franchisees should be aware that while Beverly Anns Cookie can reduce the scope of the non-compete, they cannot unilaterally expand it. The franchisee is bound to comply with any reductions communicated in writing. This clause aims to provide Beverly Anns Cookie with the ability to make concessions without losing the entire protection of the non-compete agreement, which is a fairly common practice in franchising to ensure enforceability and adaptability.

Prospective franchisees should carefully consider this clause and understand that the non-compete terms outlined in the franchise agreement are subject to change at Beverly Ann's Cookie's discretion. It would be prudent to seek legal counsel to fully understand the implications of this provision and how it might affect their future business endeavors after the franchise relationship concludes.