What is the effect of accepting payments from a Body Brain Center franchisee after a breach of the agreement?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
We and you shall not be deemed to have waived or impaired any right, power or option reserved by this Agreement (including the right to demand exact compliance with every term, condition and covenant in this Agreement or to declare any breach of this Agreement to be a default and to terminate the franchise before the expiration of its term) by virtue of: (i) any custom or practice of the parties at variance with the terms of this Agreement; (ii) any failure, refusal or neglect of us or you to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations under this Agreement, including any mandatory specification, standard, or operating procedure; (iii) any waiver, forbearance, delay, failure or omission by us to exercise any right, power or option, whether of the same, similar or different nature, relating to other Body & Brain franchisees; or (iv) the acceptance by us of any payments due from you after breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to the 2025 Body & Brain Center Franchise Disclosure Document, Body & Brain Center's acceptance of payments from a franchisee after a breach of the Franchise Agreement does not prevent Body & Brain Center from enforcing the terms of the agreement. Specifically, it does not represent a waiver or impairment of any right, power, or option reserved by the agreement. This includes the right to demand exact compliance with every term, condition, and covenant, or to declare any breach a default and terminate the franchise before its expiration.
This clause protects Body & Brain Center's ability to address breaches of the agreement, even if they have accepted payments from the franchisee after the breach occurred. This is a common provision in franchise agreements, as franchisors often need to balance maintaining cash flow with enforcing brand standards and contractual obligations.
For a prospective Body & Brain Center franchisee, this means that even if you are behind on payments or in violation of another part of the agreement, and Body & Brain Center continues to accept your payments, they still retain the right to enforce the agreement's terms, including potential termination of the franchise. Franchisees should not assume that continued acceptance of payments constitutes a waiver of any breaches.