Besides a written agreement signed by both parties, what are the exceptions to the modification requirements for the Deck Medic franchise agreement?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| q. | Non-competition covenants during the term of the franchise | 6 | No involvement in any competitive business and must comply with confidentiality, non-disclosure and non solicitation covenants. |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | 6, 17 | No involvement, ownership or interest whatsoever for 24 months in any competing business in: your Operating Territory; a 25 mile radius of your Operating Territory; the Operating Territory of any other Deck Medic Business; and you must comply with confidentiality, non-disclosure and non-solicitation covenants. |
| s. | Modification of the agreement | 18.L. | Requires writing signed by you and us, except for unilateral |
| changes that we may make to the Manuals or our unilateral | |||
| reduction of the scope of a restrictive covenant that we may | |||
| make in our discretion. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the franchise agreement generally requires modifications to be in writing and signed by both the franchisee and Deck Medic. However, there are specific exceptions to this rule. Deck Medic retains the right to make unilateral changes to the Manuals, which likely contain operational procedures, standards, and guidelines. This means Deck Medic can update these manuals without requiring the franchisee's signature or written consent.
Additionally, Deck Medic can unilaterally reduce the scope of a restrictive covenant. Restrictive covenants typically include non-compete clauses that limit a franchisee's business activities during and after the franchise term. If Deck Medic chooses to lessen the restrictions on the franchisee, it can do so at its discretion without needing a signed agreement from the franchisee.
These exceptions provide Deck Medic with flexibility in managing the franchise system and adapting to changing market conditions. However, it's important for prospective franchisees to understand that while Deck Medic can make these changes, franchisees are still obligated to adhere to the updated Manuals and any revised restrictive covenants. Franchisees should carefully review the franchise agreement and seek legal counsel to fully understand their rights and obligations regarding modifications.