Can Card My Yard unilaterally reduce the scope of the non-compete covenant?

According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard does have the right to unilaterally reduce the scope of the non-compete agreement. Specifically, Card My Yard has the right, in its sole discretion, to reduce the scope of any covenant set forth in Section XI.C of the agreement without the franchisee's consent. This becomes effective immediately upon notice to the franchisee, and the franchisee and their owners must promptly comply with the modified covenant.

This clause gives Card My Yard significant flexibility in adjusting the non-compete terms during the franchise agreement. For a prospective franchisee, this means the non-compete restrictions could become less burdensome over time, potentially allowing more freedom to engage in related business activities sooner than initially anticipated. However, it also introduces uncertainty, as Card My Yard could modify the non-compete based on its own strategic interests, which may not align with the franchisee's.

It is important for a potential Card My Yard franchisee to fully understand the implications of this clause. While a reduced non-compete might seem beneficial, it's crucial to consider why Card My Yard might choose to reduce it and how that could affect the franchisee's business. Franchisees should seek legal counsel to fully understand their rights and obligations under this clause and to assess the potential risks and benefits it presents.