Does the Brain Balance Licensor's acceptance of payments due from the Licensee constitute a waiver?

According to Brain Balance's 2025 Franchise Disclosure Document, the acceptance of payments from a licensee does not automatically constitute a waiver of any prior breach or default of the agreement. This means that even if Brain Balance continues to accept payments from a franchisee who has previously violated the franchise agreement, Brain Balance still retains the right to take action regarding the past violation.

This provision protects Brain Balance's ability to enforce the terms of the franchise agreement, even if they have accepted payments after a breach occurred. It prevents a franchisee from arguing that Brain Balance implicitly approved or excused a past violation simply by continuing to accept payments.

For a prospective Brain Balance franchisee, this clause highlights the importance of adhering to all terms of the franchise agreement. Even if the franchisor accepts payments, they can still pursue action for prior breaches or defaults. This provision is fairly standard in franchise agreements, as it protects the franchisor's right to enforce compliance without inadvertently waiving their rights through the acceptance of payments.