Can Beef O Bradys revoke a waiver granted to a franchisee?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- Maivers. We will not be deemed to have waived our right to demand exact compliance with any of the terms of this Agreement, even if at any time: (a) we do not exercise a right or power available to us under this Agreement; or (b) we do not insist on your strict compliance with the terms of this Agreement; (c) there develops a custom or practice which is at variance with the terms of this Agreement; or (d) if we accept payments which are otherwise due to us under this Agreement. Similarly, our waiver of any particular breach or series of breaches under this Agreement or of any similar term in any other agreement between you and us or between us and any other franchise owner, will not affect our rights with respect to any later breach by you or anyone else. Any waiver we may grant to you will, without any prejudice to you and without any obligation our part to compensate you, be subject to our continuing review, and may be revoked by us, at any time and for any reason, effective upon our notice to you of our revocation of the waiver.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, Beef O Bradys retains the right to revoke any waiver granted to a franchisee. This means that even if Beef O Bradys has previously excused a franchisee's non-compliance with certain terms of the franchise agreement, it can later reverse that decision and demand strict adherence to the original terms.
This provision applies regardless of whether Beef O Bradys has failed to exercise a right or power available to them under the agreement, has not insisted on strict compliance, or if a custom or practice has developed that deviates from the agreement's terms. Furthermore, accepting payments that are otherwise due does not prevent Beef O Bradys from later enforcing the original terms. The waiver of a breach by Beef O Bradys does not prevent them from addressing later breaches.
Any waiver granted by Beef O Bradys is subject to ongoing review and can be revoked at any time, for any reason, upon notice to the franchisee. This clause gives Beef O Bradys significant flexibility in enforcing the franchise agreement and means that a franchisee cannot rely on past leniency as a guarantee of future flexibility. Franchisees must remain vigilant in adhering to all terms of the agreement, as waivers can be withdrawn without prior notice or compensation.