Can Big Apple Bagels revoke a waiver of obligation for any reason?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- i. Franchisor and Franchisee may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or such other effective date stated in the notice of waiver. Any waiver granted by Franchisor shall be without prejudice to any other rights Franchisor may have, will be subject to continuing review by Franchisor and may be revoked, in Franchisor's sole discretion, at any time and for any reason, effective upon delivery to Franchisee of ten (10) days' prior written notice. Franchisor and Franchisee shall not be deemed to have waived or impaired any right, power or option reserved by this Agreement (including, without limitation, the right to demand exact compliance with every term, condition and covenant herein or to declare any breach thereof to be a default and to terminate the Franchise prior to the expiration of its term) by virtue of any custom or practice of the parties at variance with the terms hereof; any failure, refusal or neglect of Franchisor or Franchisee to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations hereunder including, without limitation, any mandatory specification, standard or operating procedure; any waiver, forbearance, delay, failure or omission by Franchisor to exercise any right, power or option, whether of the same, similar or different nature, with respect to any other BAGELS Store; or the acceptance by Franchisor of any payments from Franchisee after any breach by Franchisee of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 86–87)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, Big Apple Bagels has the right to revoke any waiver it grants to a franchisee. This waiver revocation can occur at any time and for any reason, according to the terms of the franchise agreement.
Big Apple Bagels will provide the franchisee with ten days' prior written notice before the revocation takes effect. This means that even if Big Apple Bagels has previously waived a specific obligation or restriction for the franchisee, it retains the right to reinstate that obligation with only a short notice period.
This clause is significant for prospective franchisees because it highlights the franchisor's broad discretion in managing the franchise relationship. While a waiver might offer temporary relief from certain requirements, franchisees must recognize that these waivers are not permanent and can be withdrawn at any time, potentially impacting their business operations and compliance requirements. Franchisees should factor this possibility into their business planning and maintain open communication with Big Apple Bagels to understand the conditions and potential implications of any waivers granted.