Can Dryer Vent Squad unilaterally modify Article 4 of the agreement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
eve that the covenants in this Agreement are reasonable in terms of scope, duration and geographic are, we may at any time unilaterally modify the terms of this Article 4 (Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions) 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 Article 4 to ensure that the terms are enforceable under applicable law.
(g) Breach. You agree that failure to comply with these Article 4 Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions will cause irreparable harm to us and/or other Dryer Vent Squad Business franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the parties agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
**5. Transfer Res
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
Based on the 2024 Dryer Vent Squad Franchise Disclosure Document, Article 4 pertains to intellectual property, brand protection, and non-competition covenants. The document states that failure to comply with Article 4 will cause irreparable harm to Dryer Vent Squad and its franchisees, entitling them to injunctive relief. Dryer Vent Squad can seek injunctive relief without bond (though a court may require a bond up to $1,000), and the franchisee's sole remedy would be to dissolve the injunction.
Furthermore, the FDD indicates that the remedies available to Dryer Vent Squad under Article 4 are not exclusive and can be combined with other remedies under the agreement or at law, including specific performance and monetary damages. The franchisee acknowledges the importance of these covenants in inducing Dryer Vent Squad to enter into the franchise agreement.
However, the excerpt does not explicitly state whether Dryer Vent Squad has the unilateral right to modify Article 4. It primarily focuses on the consequences of non-compliance and the remedies available to the franchisor. A prospective franchisee should seek clarification from Dryer Vent Squad regarding the modification rights of both parties concerning Article 4 to fully understand their contractual obligations and rights.