Can Byrider unilaterally waive any obligation or restriction upon the franchisee under the franchise agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.10 Waiver. The Company and the Franchisee may, by written instrument, unilaterally waive any obligation or restriction upon the other under this Agreement.
Except as provided herein, no acceptance by the Company of any payment by the Franchisee and no failure, refusal or neglect of the Company to exercise any right under this Agreement or to insist upon full compliance by the other with its obligations hereunder, including, without limitation, any mandatory specification, standard operating procedure, shall constitute a waiver of any provision of this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, both Byrider and the franchisee can unilaterally waive obligations or restrictions upon the other under the franchise agreement, but such waivers must be documented in writing. This means Byrider can choose not to enforce certain requirements or restrictions placed on the franchisee, provided they do so through a written agreement.
However, the FDD also states that Byrider's acceptance of any payment from the franchisee or failure to enforce compliance with obligations does not automatically constitute a waiver of any provision within the agreement. This implies that Byrider's leniency in one instance does not prevent them from enforcing the same provision later on.
This clause provides Byrider with flexibility in managing its franchise relationships, but it also means that franchisees need to ensure any waivers they receive from Byrider are documented in writing to be enforceable. Franchisees should be aware that Byrider's past actions or inactions do not necessarily set a precedent for future enforcement of the franchise agreement.