Can B Bops insist on exact compliance with the franchise agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- WAIVERS. Either party may by written notice to the other, unilaterally waive or reduce any obligation of or restriction upon the other party imposed by this Agreement, effective upon delivery of such written notice to such other party. Company makes no warranties upon which Franchisee may rely, and assumes no liability or obligation to Franchisee, by granting any waiver or by reason of any delay in acting on any request for a waiver. Any waiver granted by Company shall be without prejudice to any of the rights Company may have, will be subject to continuing review by Company, and may be revoked, in Company's sole discretion, at any time and for any reason upon delivery of written notice to Franchisee. Company and Franchisee shall not be deemed to have waived or impaired any right, power or option reserved by this Agreement by virtue of any custom or practice of the parties at variance with the terms hereof; by any failure, refusal or neglect of Company or Franchisee to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations hereunder; by any waiver, forbearance, delay, failure or omission by Company to exercise any right, power or option, whether of the same or of a different nature, with respect to any other franchisee; or through the acceptance by Company of any payments due from Franchisee after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, while B Bops generally has the right to insist on compliance with the franchise agreement, it may not always do so. Specifically, B Bops's franchise agreement states that the company's "failure, refusal or neglect...to insist upon exact compliance by the other with its obligations" does not constitute a waiver of its rights. This means that even if B Bops doesn't always enforce every single term of the agreement, it still retains the right to do so in the future.
This clause protects B Bops from inadvertently losing its rights through leniency or oversight. For a franchisee, this means they cannot assume that a past instance of non-enforcement means that B Bops will allow similar deviations in the future. Franchisees must always be prepared to comply fully with all requirements, even if they have not been strictly enforced in the past.
It is also important to note that B Bops retains the right to change or revoke any waiver it grants. The franchise agreement states that "Any waiver granted by Company shall be without prejudice to any of the rights Company may have, will be subject to continuing review by Company, and may be revoked, in Company's sole discretion, at any time and for any reason upon delivery of written notice to Franchisee." This further emphasizes that franchisees cannot rely on past waivers as a guarantee of future flexibility.
This type of clause is fairly common in franchise agreements, as it allows franchisors to maintain control over their brand standards and protect their legal rights, while still allowing for some flexibility in specific situations. Prospective franchisees should carefully consider this provision and understand that strict compliance with the franchise agreement is always the safest course of action.