Does Beef O Bradys' waiver of a breach affect its rights regarding later breaches?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2 Waivers. 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; or (c) if 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.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, the franchisor's decision to waive a specific breach or series of breaches does not compromise their right to address subsequent breaches. This applies not only to the agreement between the franchisor and the franchisee but also to similar terms in other agreements involving Beef O Bradys, whether with the same franchisee or other franchisees. This ensures that Beef O Bradys retains the ability to enforce the franchise agreement terms consistently over time.
This provision protects Beef O Bradys' ability to maintain standards and compliance across its franchise system. Even if Beef O Bradys chooses not to act on a particular violation at one point, it does not set a precedent that prevents them from enforcing the same rule later on. This flexibility is crucial for managing a large franchise network where circumstances and priorities may change.
For a prospective Beef O Bradys franchisee, this means that any leniency shown by the franchisor on one occasion should not be interpreted as a permanent waiver of the rules. Franchisees must remain compliant with all terms of the franchise agreement, as Beef O Bradys reserves the right to enforce those terms in the future, regardless of past actions. This clause underscores the importance of consistent adherence to the franchise agreement to avoid potential future disputes or penalties.