If Crepe De Licious modifies the Franchise Agreement, what are some examples of covenants they may limit?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious has the right to modify the terms of the Franchise Agreement. Specifically, Crepe De Licious can modify the agreement to ensure its terms are enforceable under applicable law.
Crepe De Licious can modify the terms of the agreement by limiting the scope of prohibited activities, which are activities that a franchisee cannot engage in. They can also narrow the definition of what constitutes a competitive business. This means Crepe De Licious can change what is considered a business that competes with the franchisee's Crepe De Licious business.
Additionally, Crepe De Licious can shorten the duration of the restricted period, which is the time frame during which certain restrictions apply to the franchisee after they are no longer associated with the franchise. They can also reduce the geographic scope of the restricted territory, which is the area where the franchisee is restricted from operating a similar business. Finally, Crepe De Licious can reduce the scope of any other covenant imposed upon the franchisee under the agreement.