If Caring Transitions reduces the scope of a covenant, when does the reduction become effective?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant in Section 15.2, 15.3, or 15.4 of this agreement, 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 forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Section 18.1 hereof.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions has the right to reduce the scope of certain covenants without the franchisee's consent. These covenants are outlined in Sections 15.2, 15.3, and 15.4 of the franchise agreement.
The reduction in the scope of any covenant becomes effective immediately once the franchisee receives written notice from Caring Transitions. The franchisee must then comply with the modified covenant.
This means that Caring Transitions franchisees need to be prepared to adapt quickly to changes in the scope of their restrictive covenants, as these changes take effect as soon as they receive written notice. This could impact their business operations and competitive activities, so franchisees should carefully review any such notices and seek clarification from Caring Transitions if needed.