Does the Bft Franchise Agreement state that the Franchisor's acceptance of payments constitutes a waiver of any preceding breach by the Franchisee?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
17.2 Waiver and Delay. No failure, refusal or neglect of Franchisor to exercise any right, power, remedy or option reserved to it under this Agreement, or to insist upon strict compliance by Franchisee with any obligation, condition, specification, standard or operating procedure in this Agreement, shall constitute a waiver of any provision of this Agreement and the right of Franchisor to demand exact compliance with this Agreement, or to declare any subsequent breach or default or nullify the effectiveness of any provision of this Agreement. Subsequent acceptance by Franchisor of any payment(s) due to it under this Agreement shall not be deemed to be a waiver by Franchisor of any preceding breach by Franchisee of any terms, covenants or conditions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the Bft Franchise Agreement specifies that the franchisor's acceptance of payments does not constitute a waiver of any prior breach by the franchisee. This means that even if Bft continues to accept payments from a franchisee, it does not relinquish its right to take action regarding any earlier violations of the franchise agreement.
This provision protects Bft's ability to enforce the terms of the agreement, even if they have accepted payments since a breach occurred. For a prospective franchisee, this means that simply making payments does not excuse any previous non-compliance with the agreement. Bft can still pursue remedies for those earlier breaches, regardless of whether payments have been accepted in the interim.
This type of clause is common in franchise agreements to ensure that franchisors retain their rights to enforce compliance. Franchisees should be aware that consistent adherence to the franchise agreement is crucial, as acceptance of payments does not forgive past transgressions. Franchisees should address any breaches promptly to avoid potential future action by Bft, even if payments are current.