factual

How does Browns Chicken provide notice of a waiver of obligation?

Browns_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Brown 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 Brown shall be without prejudice to any other rights Brown may have, will be subject to continuing review by Brown, and may be revoked, in Brown's sole discretion, at any time and for any reason, effective upon delivery to Franchisee of ten (10) days prior written notice. Brown 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 Brown 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 Brown to exercise any right, power or option, whether of the same, similar or different nature, with respect to any other BROWN'S Store; or the acceptance by Brown of any payments from the Franchisee after any breach by Franchisee of this Agreement.

Brown makes no warranties or guaranties upon which Franchisee may rely, and assumes no liability or obligation to Franchisee, by granting any waiver, approval or consent to Franchisee, or by reason of any neglect, delay or denial of any request therefor. Any waiver granted by Brown shall be without prejudice to any other rights Brown may have, will be subject to continuing review by Brown, and may be revoked, in Brown's sole discretion, at any time and for any reason, effective upon delivery to Franchisee of ten (10) days' prior written notice.

Source: Item 22 — Contracts (FDD page 43)

What This Means (2025 FDD)

According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken can waive or reduce any obligation or restriction upon the franchisee through a written instrument. This waiver becomes effective once the franchisee receives written notice from Browns Chicken, or on another date specified within the waiver notice.

However, any waiver granted by Browns Chicken is not absolute. Browns Chicken retains the right to review the waiver continuously and can revoke it at any time, for any reason, at their sole discretion. To revoke a waiver, Browns Chicken must provide the franchisee with ten days' prior written notice.

The FDD also clarifies that Browns Chicken's actions or inactions do not constitute a waiver of their rights. Specifically, the company does not waive its rights by overlooking any deviation from the franchise agreement terms, failing to enforce compliance, delaying the exercise of any right, or accepting payments after a breach of the agreement by the franchisee. This ensures that Browns Chicken maintains its ability to enforce the franchise agreement terms fully, despite any previous leniency.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.