Does Cicis have the right to reduce the scope of any covenant in Section 9 of the franchise agreement?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) We have the right, in our sole discretion, to reduce the scope of any covenant set forth in this Section 9, effective immediately upon notice. The existence of any claims against us, whether or not arising from this Agreement, will not constitute a defense to our enforcement of the covenants in this Section 9.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis has the right to reduce the scope of any covenant in Section 9 of the franchise agreement. Specifically, Cicis has the sole discretion to make these reductions effective immediately upon notice to the franchisee.
This clause provides Cicis with considerable flexibility in managing the restrictions placed on franchisees, particularly concerning non-competition and confidentiality. It allows Cicis to adjust the limitations based on changing market conditions or specific franchisee circumstances.
For a prospective franchisee, this means that the non-compete obligations could be lessened during the franchise term. However, Cicis is not obligated to reduce the scope, and the franchisee should not rely on this possibility. It is essential for franchisees to fully understand the implications of Section 9 and how it might affect their future business activities, especially after the franchise agreement expires or is terminated.