Can Itan modify a covenant in the franchise agreement to make it enforceable?

According to Itan's 2025 Franchise Disclosure Document, Itan or a court may modify a covenant in the Franchise Agreement to make it enforceable. Specifically, if a court finds any promise or covenant within the agreement to be unreasonable or unenforceable, Itan or the court has the authority to modify the promise or covenant. This modification would be limited to the minimum extent necessary to ensure the covenant becomes enforceable.

This provision offers a degree of flexibility, allowing covenants that might initially be deemed too broad or restrictive to be adjusted to a more acceptable scope. This could be beneficial for both Itan and the franchisee, as it allows for the preservation of the original intent of the covenant while ensuring it complies with legal standards. Without this clause, an entire covenant could be rendered void, potentially weakening the protections Itan seeks to establish through the Franchise Agreement.

However, it's important to note that the modification must be the minimum necessary to achieve enforceability. This suggests that the core intent of the covenant should remain intact as much as possible. A prospective franchisee should carefully consider the implications of all covenants within the Franchise Agreement, understanding that while modifications are possible, they are intended to be limited in scope and aimed at preserving the covenant's underlying purpose.