Under what condition is a waiver, amendment, modification, or termination of the All Team agreement valid and effective?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
A waiver, amendment, modification, or termination of this Agreement will be valid and effective only if it is in writing and signed by each party.
In addition, a written waiver by Secured Party of a Default of this Agreement will not operate as a waiver of any other Default or of a succeeding Default under the same provision or as a waiver of the provision itself.
A delay, omission, or course of dealing on the part of Secured Party in exercising any right, power, or remedy will not operate as a waiver of it, except if this Agreement expressly requires the right, power, or remedy to be exercised within a specified time, and a single or partial exercise by Secured Party of any right, power, or remedy does not preclude any further exercise of it or the exercise of any other right, power, or remedy.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, any waiver, amendment, modification, or termination of the franchise agreement must be documented in writing and signed by each party involved to be considered valid and effective. This requirement ensures that all changes to the agreement are formally agreed upon and acknowledged by all parties, preventing potential disputes or misunderstandings.
This provision is fairly standard in franchise agreements, as it provides a clear and verifiable record of any alterations to the original contract. It protects both All Team and the franchisee by requiring mutual consent and written documentation for any changes. Without this clause, verbal agreements or informal understandings could be challenged, leading to legal complications.
Furthermore, the FDD states that a written waiver by the Secured Party of a default will not act as a waiver of any other default, or any succeeding default under the same provision, or as a waiver of the provision itself. Also, a delay, omission, or course of dealing on the part of the Secured Party in exercising any right, power, or remedy will not operate as a waiver of it, except if the agreement expressly requires the right, power, or remedy to be exercised within a specified time. This protects All Team from unintentionally waiving its rights due to leniency or delay in enforcing the agreement.
Prospective franchisees should pay close attention to this clause, ensuring that any negotiated changes or waivers are properly documented and signed by all parties. This will help avoid future disputes and ensure that the terms of the franchise agreement are clear and enforceable.