Can All County unilaterally waive an obligation of the franchisee?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 25.4. Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver.
Any waiver we grant will be without prejudice to any other rights we may have, will be subject to our continuing review and may be revoked, in our sole business judgment, at any time and for any reason, effective upon delivery to you of ten (10) days' prior written notice.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County can unilaterally waive or reduce any obligation or restriction upon the franchisee under the Franchise Agreement. This waiver must be in writing and is effective upon delivery of written notice to the franchisee, or on another effective date stated in the notice.
However, any waiver granted by All County is not absolute. It is subject to All County's continuing review and can be revoked at any time, for any reason, in All County's sole business judgment. To revoke a waiver, All County must provide the franchisee with ten days' prior written notice.
This clause provides All County with considerable flexibility in managing its franchise relationships. While it could be used to benefit franchisees in certain situations, it also carries the risk that a previously granted waiver could be withdrawn, potentially creating new obligations or stricter enforcement of existing ones. Prospective franchisees should carefully consider this provision and discuss with All County the circumstances under which such waivers might be granted or revoked.