Can the Bananas Smoothies Frozen Yogurt Franchisor unilaterally waive obligations of the Developer?
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 FDD, the franchisor has the ability to unilaterally waive or reduce any obligation of the developer (franchisee) under the Area Development Agreement via a written instrument. However, any such waiver is not indefinite.
Bananas Smoothies Frozen Yogurt retains the right to revoke any waiver that it grants to the developer. To do so, it must provide the developer with 10 days' prior written notice. The franchisor can revoke the waiver at any time and for any reason, at its sole discretion.
Furthermore, the FDD states that the franchisor's failure to enforce any right or insist on compliance by the developer does not constitute a waiver of that right. This means that even if Bananas Smoothies Frozen Yogurt does not strictly enforce certain requirements initially, it can still enforce them later without having waived its right to do so.