Does the Checkers franchise agreement specify that the franchisor's waiver of an obligation is subject to continuing review?
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' 2025 Franchise Disclosure Document, any waiver granted by Checkers of an obligation under the franchise agreement is subject to continuing review. This means that even if Checkers initially waives a specific requirement or obligation for a franchisee, they retain the right to re-evaluate that waiver.
Checkers can revoke a previously granted waiver at any time, for any reason, according to the agreement. To do so, Checkers must provide the franchisee with ten days' prior notice. This provision gives Checkers considerable flexibility in enforcing the franchise agreement and allows them to adapt to changing circumstances or address specific franchisee issues as they arise.
For a prospective Checkers franchisee, this clause implies that any leniency or exception granted by Checkers is not permanent and can be withdrawn with limited notice. Franchisees should, therefore, not rely on any waiver as a guaranteed right and should always be prepared to comply fully with the original terms of the franchise agreement. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's interests and maintain brand standards across all locations.