What is the effect of the All Dogs Unleashed franchisor waiving a breach of the agreement by the franchisee?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
9.5 Waiver and Delay. The following will not constitute our waiver of the provisions of this Agreement with respect to any later breach or our waiver of our right at any time to require strict compliance with the provisions of this Agreement or of the Franchise Agreements:
9.5.1 Waiver by us of any breach or series of breaches or defaults in your performance,
9.5.2 Our failure, refusal or neglect to exercise any right, power or option given to us under this Agreement or under any Franchise Agreement between us and you, or
9.5.3 Our failure, refusal or neglect to insist on strict compliance with or performance of your obligations under this Agreement or any other Franchise Agreement between you and us.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the franchisor's waiver of a breach of the agreement by the franchisee does not constitute a continued waiver of the agreement. Specifically, the waiver of a breach or series of breaches, the failure to exercise a right or option, or the failure to insist on strict compliance does not mean that All Dogs Unleashed gives up its rights to enforce the agreement strictly in the future.
This means that even if All Dogs Unleashed overlooks a franchisee's violation of the franchise agreement, the franchisee cannot assume that the franchisor will continue to do so. All Dogs Unleashed retains the right to demand strict adherence to the agreement's terms at any time. This clause protects All Dogs Unleashed from inadvertently losing its ability to enforce the franchise agreement due to past leniency.
This type of clause is common in franchise agreements. It reinforces the franchisor's right to enforce all terms of the agreement, even if they have been lax in the past. For a prospective All Dogs Unleashed franchisee, this highlights the importance of consistently adhering to the franchise agreement, as the franchisor's previous actions do not guarantee future acceptance of non-compliance.