Does Crepe De Licious have the right to reduce the scope of covenants in Sections 8.2 and 8.3?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.7 Franchisor's Right to Reduce Scope of the Covenants. Area Developer understands and acknowledges that Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in Sections 8.2 and 8.3 in this Agreement, or any portion thereof, without Area Developer's consent, effective immediately upon receipt by Area Developer of written notice thereof; and Area Developer agrees that it shall comply forthwith with any covenant as so modified, which shall be fully enforceable notwithstanding the provisions of Section 15 hereof.
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 reduce the scope of any covenant set forth in Sections 8.2 and 8.3 of the agreement. This reduction can be made at Crepe De Licious's sole discretion without the Area Developer's consent.
This modification becomes effective immediately upon the Area Developer receiving written notice. The Area Developer is then obligated to comply with the covenant as modified. This modification is fully enforceable, regardless of other provisions in Section 15 of the agreement.
This clause provides Crepe De Licious with considerable flexibility to adjust the restrictions placed on the Area Developer. It also places the onus on the Area Developer to stay informed of any changes and to adapt their business practices accordingly. Prospective franchisees should carefully consider the implications of this clause, as it could impact their operational freedom and competitive activities within the Crepe De Licious system.