Can Ella Cafe reduce the scope of any covenant in the Confidentiality Agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
I understand and acknowledge that Franchisor has the right, in its sole discretion, to reduce the scope of any covenant set forth in this Confidentiality Agreement, or any portion thereof, without my consent, effective immediately upon receipt by me of written notice thereof, and I agree to comply forthwith with any covenant as so modified.
I also understand that neither I nor Developer may make any changes to this Confidentiality Agreement without the written consent of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe has the right to reduce the scope of any covenant within the Confidentiality Agreement. This reduction can be made without the franchisee's consent.
Specifically, Ella Cafe can modify the covenants by providing written notice to the franchisee. Upon receiving this notice, the franchisee is obligated to comply with the modified covenant immediately. This clause provides Ella Cafe with considerable flexibility to adjust the restrictions and obligations outlined in the Confidentiality Agreement as they see fit.
This condition means that a prospective Ella Cafe franchisee should carefully consider the potential implications of these covenants, as they could be altered during the franchise term. It is also important to note that the franchisee cannot make any changes to the Confidentiality Agreement without Ella Cafe's written consent, further emphasizing Ella Cafe's control over the terms of the agreement.