Can Mr. Sandless reduce the scope of any covenant in the agreement without my consent?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
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- I understand and acknowledge that the Company 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 my consent, effective immediately upon receipt by me of written notice thereof; and I agree to comply forthwith with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the company has the right to unilaterally reduce the scope of any covenant in the agreement. Specifically, Mr. Sandless can, at its sole discretion, reduce the scope of any covenant without the franchisee's consent. This change becomes effective immediately upon the franchisee receiving written notice. The franchisee must then comply with the covenant as modified.
This clause gives Mr. Sandless significant flexibility to adjust the franchisee's obligations during the term of the agreement. For a prospective franchisee, this means that the covenants they initially agree to may be altered by Mr. Sandless, potentially increasing or decreasing the franchisee's responsibilities. It is crucial to understand that these changes can be made without the franchisee's explicit approval.
This type of unilateral modification clause is not uncommon in franchising, but franchisees should carefully consider its implications. While it could potentially benefit the franchisee if Mr. Sandless reduces a burdensome covenant, it also carries the risk of Mr. Sandless increasing the franchisee's obligations. Therefore, a prospective Mr. Sandless franchisee should seek legal counsel to fully understand the scope of this clause and its potential impact on their business.