If Crawlspace Medic modifies the non-compete agreement, what is the Covenantor's obligation?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, 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 Covenantor's or Franchisee's consent, effective immediately upon receipt
by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, if Crawlspace Medic chooses to modify any part of the non-compete agreement, the Covenantor is obligated to comply with the modified agreement immediately after receiving written notice. This modification can be made without the Covenantor's consent.
This clause gives Crawlspace Medic significant flexibility to adjust the non-compete terms as they see fit. This could be in response to changing market conditions, legal requirements, or other factors that affect the Crawlspace Medic business. The Covenantor has no right to refuse these changes and must comply immediately.
For a prospective franchisee, this means that the non-compete agreement they initially sign is subject to change at any time during the term of the agreement. It is important to understand the potential implications of these changes and how they might affect the Covenantor's future business activities should they leave the Crawlspace Medic system. Franchisees should seek legal counsel to fully understand the scope and enforceability of these provisions.