Can the Bananas Smoothies Frozen Yogurt Franchisor revoke a previously granted waiver?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2 Waivers. Developer and Franchisor may by written instrument unilaterally waive or reduce any obligation of the other under this Agreement. Any waiver granted by Franchisor shall be without prejudice to any other rights Franchisor may have, will be subject to continuing review by Franchisor and may be revoked, in Franchisor's sole discretion, at any time and for any reason, effective upon deliver to Developer of 10 days' prior notice. Developer and Franchisor shall not be deemed to have waived any right reserved by this Agreement by virtue of any custom or practice of the parties at variance with it; any failure, refusal or neglect by Developer or Franchisor to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations hereunder; any waiver, forbearance, delay, failure or omission by Franchisor to exercise any right, whether of the same, similar or different nature, with respect to other Green Leaf's Restaurants; or the acceptance by Franchisor of any payments due from Developer after any breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the franchisor has the right to revoke a previously granted waiver. The document states that any waiver granted by the franchisor is subject to continuing review and can be revoked at any time, for any reason, at the franchisor's sole discretion.
To revoke a waiver, Bananas Smoothies Frozen Yogurt must deliver a 10 days' prior notice to the developer. This means that even if the franchisor has previously waived a specific obligation for the franchisee, they can reinstate that obligation with only a 10 days' notice.
This clause gives significant power to Bananas Smoothies Frozen Yogurt and introduces an element of uncertainty for the franchisee. It is important for a prospective franchisee to understand that any benefit they receive from a waiver can be taken away with limited notice. This is a fairly standard clause in franchise agreements, as it allows the franchisor flexibility to address changing circumstances or inconsistencies in enforcement.