When does a reduction in the scope of a covenant by Cinch I.T. become effective?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.5 You understand and acknowledge that We shall have the right, in Our sole discretion, to reduce the scope of any covenant set forth in Sections 11.1 and 11.2 in this Agreement, or any portion thereof, without Your consent, effective immediately upon receipt by You of written notice thereof, and You agree that You shall forthwith comply with any covenant as so modified, which shall be fully enforceable.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Cinch I.T. has the right to reduce the scope of certain covenants within the franchise agreement. Specifically, Cinch I.T. can modify covenants found in Sections 11.1 and 11.2 of the agreement.
This reduction in scope becomes effective immediately upon the franchisee's receipt of written notice from Cinch I.T. The franchisee's consent is not required for this modification to take effect. The franchisee is then obligated to comply with the covenant as it has been modified, and this modified covenant is fully enforceable.
This clause gives Cinch I.T. significant flexibility to adjust the franchisee's obligations under the agreement. It is important for a prospective franchisee to understand that Cinch I.T. can unilaterally change the scope of these covenants, and the franchisee must comply immediately upon receiving written notice. A prospective franchisee should seek legal counsel to fully understand the implications of these covenants and the franchisor's right to modify them.