Under what conditions can the Bananas Smoothies Frozen Yogurt Franchisor revoke a 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 FDD, the franchisor can revoke a waiver under specific conditions. Both the developer (franchisee) and franchisor can issue written waivers or reduce obligations under the agreement. However, any waiver granted by Bananas Smoothies Frozen Yogurt is subject to continuing review and can be revoked at any time, for any reason, at the franchisor's sole discretion.
The revocation becomes effective 10 days after the franchisee receives notice of the revocation. This means that Bananas Smoothies Frozen Yogurt has the right to change its mind about a previously granted waiver, provided they give the franchisee a 10-day heads up.
This clause also specifies that the franchisor's rights under the agreement are not waived simply because of past customs or practices, failure to enforce a right, or acceptance of payments after a breach. This protects Bananas Smoothies Frozen Yogurt from inadvertently losing rights due to leniency or informal practices. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's interests and ensure consistent enforcement of the agreement's terms.