Does a waiver of a default by Angry Chickz constitute a waiver of subsequent defaults?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.4 Waiver and Delay.
No waiver by Company of any Default or Defaults, or series of Defaults in performance by Developer, and no failure, refusal or neglect of Company to exercise any right, power or option given to it hereunder or under any Franchise Agreement or other agreement between Company and Developer, whether entered into before, after or contemporaneously with the execution hereof (and whether or not related to the Restaurants), or to insist upon strict compliance with or performance of Developer's (or its Affiliates) obligations under this Agreement or any Franchise Agreement or other agreement between Company and Developer (or its Affiliates), whether entered into before, after or contemporaneously with the execution hereof (and whether or not related to the Restaurants), shall constitute a waiver of the provisions of this Agreement with respect to any continuing or subsequent Default or a waiver by Company of its right at any time thereafter to require exact and strict compliance with the provisions thereof.
Company will consider written requests by Developer for Company's consent to a waiver of any obligation imposed by this Agreement.
Developer agrees, however, that Company is not required to act uniformly with respect to waivers, requests and consents as each request will be considered on a case-by-case basis, and nothing shall be construed to require Company to grant any such request.
Any waiver granted by Company shall be without prejudice to any other rights Company may have, will be subject to continuing review by Company, and may be revoked, in Company's discretion, at any time and for any reason.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz FDD, a waiver by Angry Chickz of any default in performance by the developer does not constitute a waiver of the franchise agreement's provisions regarding any continuing or subsequent default. This also applies to the failure, refusal, or neglect of Angry Chickz to exercise any right or to insist upon strict compliance with the developer's obligations.
This means that even if Angry Chickz overlooks a specific instance of non-compliance or grants a temporary reprieve, it does not forfeit its right to enforce the agreement strictly in the future. Angry Chickz retains the right to demand full compliance with all terms of the agreement moving forward, regardless of any previous waivers or leniency.
The FDD states that Angry Chickz will consider written requests for waivers on a case-by-case basis and is not required to act uniformly regarding waiver requests. Any waiver granted by Angry Chickz is subject to continuing review and may be revoked at any time, at their discretion, for any reason. This clause protects Angry Chickz's interests by ensuring that past leniency does not set a precedent or weaken their ability to enforce the franchise agreement's terms consistently.
This policy is fairly standard in franchising, as franchisors need to maintain consistent standards across all franchise locations to protect the brand. Prospective Angry Chickz franchisees should understand that any deviations from the franchise agreement require explicit written consent from Angry Chickz and that such consent can be withdrawn. This underscores the importance of adhering to the franchise agreement and maintaining open communication with Angry Chickz regarding any potential challenges in meeting the agreement's requirements.