Can Dickeys Barbecue Pit unilaterally modify the franchise agreement, and if so, under what circumstances?
Dickeys_Barbecue_Pit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in Franchise or Other Agreement [Article in Franchise Agreement/ Article in Development Agreement] | Summary [Items shown in plain text depict summary from Franchise Agreement / Items shown in italicized text depict summary from Development Agreement] | |
|---|---|---|---|
| your obligations and new developer satisfies Dickey's requirements for a developer. | |||
| n. | Franchisor's right of first refusal to acquire franchisee's business | Article 15/ Article 7 | Dickey's can match an offer for the franchisee's business./ Dickey's can match an offer for the developer's business. |
| o. | Franchisor's option to purchase franchisee's business | Article 17/ N/A | Dickey's has option to purchase the assets of your business upon termination of the franchise./ Dickey's does not have any such option. |
| p. | Death or disability of franchisee | Article 15/ Article 7 | Interest in franchise must be transferred to an approved person within 12 months in the event of death and 6 months in the event of disability./ Interest in development rights must be transferred to an approved person within 12 months in the event of death and 6 months in the event of disability. |
| q. | Non-competition covenants during the term of the franchise | Article 18/ Article 8 | You will not divert any business or customer to a competitor and you will not be involved in a competing restaurant. (subject to state law)/ You will not divert any business or customer to a competitor and you will not be involved in a competing restaurant (subject to state law). |
| r. | Non-competition covenants after the franchise is terminated or expires | Article 18/ Article 8 | No competing business for 2 years within 30 miles of your Restaurant or within 5 miles of another Restaurant (including after assignment) (subject to state law)./ No competing business for 2 years within 5 miles of the boundary of the Territory or within 5 miles of another Restaurant (subject to state law). |
| s. | Modification of the agreement | Article 25/ Article 13 | Generally, no modifications without your consent, except Dickey's may unilaterally change the scope of the competition covenants, Proprietary Marks and Manual./ Generally, no modifications without your consent, except Dickey's may unilaterally change the scope |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 77–84)
What This Means (2024 FDD)
According to Dickeys Barbecue Pit's 2024 Franchise Disclosure Document, the franchise agreement generally cannot be modified without the franchisee's consent. However, Dickeys Barbecue Pit retains the right to unilaterally make changes to specific aspects of the agreement.
Specifically, Dickeys Barbecue Pit can unilaterally change the scope of the competition covenants, Proprietary Marks, and the Manual. This means that Dickeys Barbecue Pit can alter the terms related to non-competition, trademarks, and operational guidelines without needing the franchisee's explicit approval.
For a prospective franchisee, this indicates that while the core agreement remains stable, certain key operational and competitive aspects are subject to change at Dickeys Barbecue Pit's discretion. Franchisees should pay close attention to these areas and understand the potential impact of such unilateral changes on their business. It is advisable to seek clarification from Dickeys Barbecue Pit regarding the scope and potential frequency of these modifications before entering into a franchise agreement.