What is the effect of a waiver granted by Checkers on other rights they may have?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.02 Waiver of Obligations. We and you may by written instrument unilaterally waive or reduce any obligation of the other under this Agreement. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of 10 days' prior written notice. You and we shall not be deemed to have waived any right reserved by this Agreement or be deemed to have modified this Agreement by virtue of any custom or practice of the parties at variance with it.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers and the franchisee can waive obligations under the franchise agreement via a written instrument. However, any waiver granted by Checkers does not negatively impact any other rights Checkers may possess. The waiver is subject to continuing review by Checkers and can be revoked at any time, for any reason, with 10 days' prior written notice to the franchisee. The FDD also states that Checkers and the franchisee are not deemed to have waived any right reserved by the agreement or modified the agreement due to any custom or practice that differs from the agreement.
In the context of franchise agreements, waivers are sometimes used to provide flexibility in specific situations without permanently altering the terms of the agreement. For a Checkers franchisee, this means that Checkers might temporarily reduce or waive a certain requirement, but this doesn't prevent Checkers from enforcing that requirement or any other rights in the future. This clause ensures that Checkers retains its ability to manage the franchise system and enforce standards.
This provision is fairly standard in franchise agreements, as it allows for temporary adjustments while protecting the franchisor's long-term rights. Prospective Checkers franchisees should understand that any waivers they receive are not permanent and can be revoked with proper notice. It would be prudent for a potential franchisee to seek legal counsel to fully understand the implications of this clause and how it might affect their specific circumstances.