For Bang Cookies, does the acceptance of payments from the Franchisee constitute a waiver of any default or breach?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
18.B. WAIVER OF OBLIGATIONS
No delay, waiver, omission, or forbearance on the part of Franchisor to enforce any term and condition of this Agreement or exercise any of Franchisor's rights, options, or powers under this Agreement constitutes a waiver by Franchisor to enforce any other term and condition of this Agreement or exercise any of Franchisor's other rights, options, or powers under this Agreement. No such delay, waiver, omission, or forbearance shall constitute a waiver by Franchisor to subsequently enforce such term and condition of this Agreement or subsequently exercise such right, option, or power. Acceptance by Franchisor of any payments, fees, charges, or other amount from Franchisee payable to Franchisor pursuant to this Agreement shall not constitute a waiver or acceptance of Franchisee's default or breach of this Agreement or otherwise a waiver of any term and condition of this Agreement, and Franchisor reserves the right to pursue any and all additional remedies set forth in this Agreement, at law, or in equity. Franchisor shall likewise not be deemed to have waived or impaired any term and condition, right, option or power set f
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the acceptance of payments from a franchisee does not constitute a waiver of any default or breach of the Franchise Agreement. Specifically, Bang Cookies retains the right to pursue all available remedies, even after accepting payments. This means that even if a franchisee is in default of the agreement (for example, by failing to meet certain performance standards or violating brand standards), Bang Cookies' acceptance of royalty fees or other payments does not prevent them from taking action to enforce the agreement or terminate the franchise.
This provision protects Bang Cookies by ensuring they can continue to receive payments while addressing any breaches of the agreement. It also allows Bang Cookies to work with franchisees to resolve issues without giving up their right to take further action if necessary. For a prospective franchisee, this means that simply making payments does not guarantee that they are in good standing or that Bang Cookies will overlook any violations of the agreement.
Franchisees should be aware that Bang Cookies can still enforce the terms of the agreement, even if payments are current. This underscores the importance of adhering to all aspects of the Franchise Agreement and maintaining open communication with Bang Cookies to address any potential issues promptly. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's rights while allowing for ongoing business operations.