Does the Checkers franchise agreement specify that the franchisor's waiver of an obligation is without prejudice to any other rights the franchisor may have?
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 franchise agreement addresses the waiver of obligations. It states that Checkers can unilaterally waive or reduce any obligation of the franchisee through a written instrument. Importantly, any waiver granted by Checkers is explicitly stated to be without prejudice to any other rights Checkers may possess. This means that even if Checkers waives a specific requirement or obligation for the franchisee, it does not give up any other rights it has under the franchise agreement.
This waiver is subject to continuing review by Checkers and can be revoked at any time, for any reason, at Checkers's sole discretion. Checkers must provide the franchisee with ten (10) days' prior notice before the revocation becomes effective. The agreement also clarifies that Checkers's rights are not waived due to custom, practice, failure to exercise a right, or acceptance of payments after a breach of the agreement.
For a prospective Checkers franchisee, this clause means that Checkers retains significant flexibility in enforcing the franchise agreement. While Checkers may choose to waive certain obligations temporarily, it can reinstate those obligations or exercise other rights at any time with proper notice. This provision protects Checkers's interests and ensures that it can adapt to changing circumstances without permanently relinquishing its contractual rights. Franchisees should be aware of this clause and understand that any waivers granted by Checkers are not necessarily permanent.