Can Expense Reduction Analysts reduce the scope of any covenant in the agreement?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- I understand and acknowledge that the Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this 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.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, Expense Reduction Analysts has the right to reduce the scope of any covenant in the franchise agreement. This can be done without the franchisee's consent.
The change is effective immediately once the franchisee receives written notice. The franchisee must then comply with the covenant as modified.
This clause gives Expense Reduction Analysts considerable flexibility to adjust the franchisee's obligations during the term of the agreement. Prospective franchisees should carefully consider the implications of this unilateral modification right, as it could impact their operational control and financial obligations. It is advisable to seek legal counsel to fully understand the scope and potential impact of this provision.