Does 1 800 Packouts' acceptance of payments due from me waive any prior defaults?

According to 1 800 Packouts' 2025 Franchise Disclosure Document, the acceptance of payments from a franchisee does not waive any prior defaults. This means that even if 1 800 Packouts accepts a payment from you, they still retain all rights and remedies regarding any previous breaches of the franchise agreement.

This provision protects 1 800 Packouts from inadvertently waiving their rights due to accepting payments. For a prospective franchisee, this means that you cannot assume that making a payment will resolve any existing defaults. 1 800 Packouts can still take action against you for those prior defaults, even after accepting a payment.

This type of clause is common in franchise agreements. It is important for a franchisee to address any defaults promptly and obtain written confirmation from 1 800 Packouts that the default has been cured or waived to avoid future disputes. A 'course of dealing' will not be considered a waiver, and any waiver must be in writing.