Can the arbitrator amend or modify the terms of the Crepe De Licious Franchise Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- d. You and we both believe that the covenants in this Agreement are reasonable in terms of scope, duration, and geographic area. However, we may at any time unilaterally modify the terms of this Agreement upon written notice to you by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory, and/or reducing the scope of any other covenant imposed upon you under this Agreement to ensure that the terms and covenants in this Agreement are enforceable under applicable law.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the franchisor, Crepe De Licious Holding USA, Inc., retains the right to unilaterally modify the terms of the franchise agreement under specific conditions. According to Item 22, paragraph 9(d), Crepe De Licious may modify the agreement by providing written notice to the franchisee.
Specifically, Crepe De Licious can limit the scope of prohibited activities, narrow the definition of a competitive business, shorten the duration of the restricted period, reduce the geographic scope of the restricted territory, and/or reduce the scope of any other covenant imposed upon the franchisee. This modification is allowed to ensure that the terms and covenants in the agreement are enforceable under applicable law.
This clause gives Crepe De Licious considerable flexibility to adjust the franchise agreement to comply with legal requirements, potentially impacting the franchisee's operational restrictions and competitive landscape. While this protects the enforceability of the agreement, it also introduces an element of uncertainty for the franchisee, as the terms of their franchise can be altered during the agreement's term.