Can Canine Dimensions' acceptance of an interest payment be considered a waiver of their rights regarding the default?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.5.4 Franchisor's acceptance of any interest payment cannot be construed as a waiver of its rights in respect of the default giving rise to such payment and is without prejudice to any right by Franchisor's to terminate this Agreement.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the acceptance of any interest payment by Canine Dimensions does not represent a waiver of their rights regarding the default that led to the interest payment. This is explicitly stated in the franchise agreement to protect Canine Dimensions' ability to enforce the agreement despite accepting late payments or interest.
This provision means that even if a franchisee is late on a payment and Canine Dimensions accepts the interest on that late payment, Canine Dimensions still retains the right to address the original default, including potentially terminating the agreement. This protects Canine Dimensions from inadvertently relinquishing their rights simply by accepting a payment.
For a prospective Canine Dimensions franchisee, this clause highlights the importance of making all payments on time. Even if Canine Dimensions accepts a late payment with interest, they can still take action based on the initial failure to pay on time. Franchisees should be aware that paying interest on overdue amounts does not excuse the original breach of contract.