What aspects of the covenants in Section 3 of the Itan franchise agreement can be modified?

According to Itan's 2025 Franchise Disclosure Document, Itan has the right to modify the brand protection covenants outlined in Section 3 of the franchise agreement. Itan can make these changes unilaterally by providing written notice to the franchisee.

The specific aspects of the covenants that Itan can modify include limiting the scope of prohibited activities, narrowing the definition of what constitutes a competing business, shortening the duration of the restricted period, reducing the geographic scope of the restricted territory, and reducing the scope of any other covenant imposed under Section 3. These modifications are intended to ensure that the covenants are enforceable under applicable law.

This unilateral modification right gives Itan significant flexibility to adjust the competitive restrictions placed on franchisees. A prospective franchisee should understand that the non-compete terms in the original agreement could be altered by Itan during the franchise term. While the stated reason for modification is to ensure enforceability, Itan could potentially broaden or narrow the restrictions depending on changes in the market or legal landscape. Franchisees should seek legal counsel to fully understand the implications of these covenants and the potential for unilateral modification.