Can Closet Storage Concepts unilaterally reduce the scope of any covenants of Franchisee?
Closet_Storage_Concepts Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- I understand and acknowledge that the Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the franchisor has the right to unilaterally reduce the scope of any covenant set forth in the agreement. Specifically, the franchisee's consent is not required for this reduction to take effect.
This modification becomes effective immediately once the franchisee receives written notice from Closet Storage Concepts. The franchisee is then obligated to comply with the covenant as it has been modified.
This clause gives Closet Storage Concepts significant flexibility to adjust the franchisee's obligations. While it might seem unfavorable to the franchisee, it could potentially work in their favor if the franchisor reduces a restrictive covenant that was hindering their business operations. However, franchisees should be aware that Closet Storage Concepts has the power to change the terms of their agreement without prior negotiation.