Can Buona reduce the scope of any covenant in Article XIV without the franchisee's consent?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.7 Right to Reduce Covenants. Franchisee understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Article XIV, or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice thereof, and Franchisee agrees that it shall comply with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Article XXIII.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to reduce the scope of any covenant in Article XIV without the franchisee's consent. This means that Buona can modify the terms of the covenants outlined in Article XIV to be less restrictive for the franchisee.
This modification becomes effective immediately upon the franchisee receiving written notice from Buona. The franchisee is then obligated to comply with the covenant as it has been modified. This right is granted to Buona at its sole discretion.
This clause is enforceable regardless of the provisions in Article XXIII of the franchise agreement. Article XIV has been fully negotiated and agreed upon freely by both parties, meaning that franchisees should be aware of this clause and its implications before signing the agreement.