Under what conditions is a waiver by Boulder Designs of a franchisee's default considered binding?

According to Boulder Designs' 2025 Franchise Disclosure Document, the failure of either party to insist on performance of any terms and conditions of the agreement does not constitute a waiver of future performance. This means that even if Boulder Designs overlooks a franchisee's failure to meet certain obligations at one point, it does not give up its right to enforce those obligations in the future.

This clause protects Boulder Designs from inadvertently relinquishing its rights due to leniency or oversight. For a prospective franchisee, this implies that they cannot rely on past instances where Boulder Designs may have been lenient. The franchisee is expected to adhere strictly to the terms of the franchise agreement at all times.

This type of 'no waiver' clause is standard in franchise agreements. It ensures that the franchisor retains the ability to enforce all provisions of the agreement, even if they have not always done so in the past. Franchisees should be aware that Boulder Designs's inaction on a particular default does not prevent them from enforcing that provision later on.