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Will Belocal's failure to object to a breach of the agreement be considered a waiver of that breach or any subsequent breach?

Belocal Franchise · 2025 FDD

Answer from 2025 FDD Document

Any failure by Franchisor to object to or take action with respect to any breach of any provision of this Agreement by Covenantor will not operate or be construed as a waiver of or consent to that breach or any subsequent breach by Covenantor.

Source: Item 22 — CONTRACTS (FDD page 71)

What This Means (2025 FDD)

According to Belocal's 2025 Franchise Disclosure Document, the franchisor's failure to object to a breach of the agreement by the franchisee will not be considered a waiver of that breach or any subsequent breach. This is explicitly stated in the contract terms. This means Belocal retains the right to act on any violation of the franchise agreement, even if they did not immediately address a previous similar violation.

This clause protects Belocal's ability to enforce the franchise agreement consistently over time. It prevents a franchisee from arguing that a past failure to enforce a specific term means that Belocal has given up its right to enforce that term in the future. This is a common provision in franchise agreements, designed to give the franchisor flexibility in managing its franchise system.

For a prospective Belocal franchisee, this means that strict compliance with the franchise agreement is essential. Even if a particular rule seems to be overlooked at one point, Belocal still has the right to enforce it later. Franchisees should not assume that leniency in one instance sets a precedent for future behavior. It is always best to adhere to the terms of the agreement to avoid potential issues.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.