What is a Covenantor's obligation if Fly Fitness reduces the scope of the non-compete covenant?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, 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 Covenantor's or Franchisee's consent, effective immediately upon receipt by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if Fly Fitness reduces the scope of any covenant within the agreement, the Covenantor is obligated to comply with the modified covenant immediately upon receiving written notice. This modification can occur without the Covenantor's or Franchisee's consent.
This means that Fly Fitness has the right to alter the non-compete terms, and the Covenantor must adhere to these changes as soon as they are notified in writing. This could involve changes to the geographic area or the scope of activities restricted by the non-compete agreement. The Covenantor does not have the option to refuse the changes.
This clause provides Fly Fitness with flexibility in enforcing non-compete agreements, allowing them to adjust the restrictions based on changing business needs or legal considerations. Prospective franchisees should understand that the non-compete terms can be altered by Fly Fitness during the term of the agreement, and the Covenantor is legally bound to comply with these changes.