Under what conditions can Itan unilaterally modify the terms of the brand protection covenants?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Although you and we believe the covenants in §3 are reasonable we may, upon written notice to you, unilaterally modify the brand protection covenants in §3 of this Agreement 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 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 can unilaterally modify the terms of the brand protection covenants under specific conditions. Itan may modify these terms by providing written notice to the franchisee.
The modifications Itan can make are limited to ensure the covenants are enforceable under applicable law. These modifications include limiting the scope of 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 on the franchisee.
This clause ensures that Itan can adapt the brand protection covenants to comply with changing legal requirements, which could benefit franchisees by preventing the covenants from being overly broad or unenforceable. However, it also gives Itan the power to alter the terms of the agreement, potentially impacting the franchisee's rights and obligations. Franchisees should pay close attention to any written notices from Itan regarding modifications to these covenants and seek legal advice if they have concerns about the changes.