Does the Checkers franchise agreement specify that the acceptance of payments after a breach constitutes a waiver of rights?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
18.02 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 ten (10) days' prior notice. You and we shall not be deemed to have waived any right reserved by this Agreement by virtue of any custom or practice of the parties at variance with it; any failure, refusal or neglect by you or us to exercise any right under this Agreement (except as provided in Section 18.03) or to insist upon exact compliance by the other with its obligations hereunder; any waiver, forbearance, delay, failure or omission by us to exercise any right, whether of the same, similar or different nature, with respect to other Restaurants; or the acceptance by us of any payments due from you after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the acceptance of payments from a franchisee after a breach of the franchise agreement does not constitute a waiver of Checkers's rights. Specifically, Checkers retains its rights and ability to enforce the agreement, even if payments are accepted after a breach has occurred. This is a standard provision in franchise agreements, allowing the franchisor to continue receiving payments while still addressing the franchisee's non-compliance.
This provision protects Checkers by ensuring they can continue to receive revenue while simultaneously pursuing remedies for the franchisee's breach. It prevents a scenario where accepting payment could be interpreted as condoning the breach or relinquishing their right to take action. This clause is designed to give Checkers flexibility in managing breaches of contract by franchisees.
For a prospective Checkers franchisee, this means that even if you are in breach of the agreement, continuing to make payments does not guarantee that Checkers will not take further action against you. You should not assume that payment acceptance implies forgiveness or a waiver of Checkers's rights. It is crucial to rectify any breaches promptly to avoid potential legal or contractual repercussions, regardless of whether payments are being accepted. Franchisees should always seek legal counsel to understand their rights and obligations under the franchise agreement, especially when facing a potential breach.