Does a waiver of a provision in the Big O Tires Agreement constitute a waiver of other provisions?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.02 Waiver. No failure of Big O to exercise any power reserved to it by this Agreement and no custom or practice of the parties at variance with the terms hereof shall constitute a waiver of Big O's right to demand exact compliance with any of the terms herein. A waiver or approval by Big O of any particular
default by Franchisee or any other Big O franchisee or acceptance by Big O of any payments due hereunder shall not be considered a waiver or approval by Big O of any preceding or subsequent breach by Franchisee of any term, covenant, or condition of this Agreement. Big O shall not be deemed to have waived any of its rights under this Agreement, including any right to receive payment in full for any Product or Service provided, nor shall Franchisee be deemed to have been excused from performance of any of its obligations pursuant to this Agreement, unless such waiver or excuse is written and executed by an authorized representative of Big O and Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, a failure by Big O Tires to enforce a right or any deviation from the agreement's terms does not waive their right to demand strict compliance with all terms.
Specifically, if Big O Tires waives a franchisee's default or accepts payments, this action doesn't excuse any prior or future breaches of the agreement. Big O Tires retains all rights unless a waiver is explicitly written and signed by both an authorized Big O Tires representative and the franchisee.
This clause protects Big O Tires by ensuring that any leniency shown to a franchisee on one occasion does not set a precedent or weaken their ability to enforce the agreement's provisions fully in the future. For a prospective franchisee, this means they cannot assume that past exceptions or overlooked violations will continue to be tolerated. Franchisees must obtain written waivers for any deviations from the agreement to ensure they are protected from future enforcement actions by Big O Tires.