What factors can Itan modify in the brand protection covenants?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Although you and we both believe the covenants in this Agreement are reasonable, we may at any time unilaterally modify the terms of the brand protection covenants in §3 of this Agreement, upon written notice to you, by limiting the scope of the Prohibited Activities, narrowing the definition of a Competing 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 §3 of this Agreement to ensure that the covenants are enforceable under applicable law.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
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. These modifications can be made unilaterally, meaning Itan does not require the franchisee's consent, but they must provide written notice of the changes.
The specific aspects of the brand protection covenants that Itan can adjust 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 upon the franchisee under Section 3.
These modifications are intended to ensure that the covenants remain enforceable under applicable law. This means Itan can adapt the restrictions to comply with legal standards, which may vary by jurisdiction. For a prospective franchisee, this indicates that the terms of the brand protection covenants are not necessarily fixed and could change during the franchise term. It is important to stay informed of any such modifications and understand their implications for your business operations and future opportunities.