Can Checkers revoke a waiver of obligation, and if so, under what conditions?
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 has the right to revoke a waiver of obligation under specific conditions. Checkers or the franchisee can issue a written instrument to waive or reduce any obligation of the other party under the agreement. However, any waiver granted by Checkers is subject to continuing review and can be revoked at any time, for any reason, at Checkers' sole discretion.
To revoke a waiver, Checkers must provide the franchisee with 10 days' prior written notice. This means that Checkers can change its mind about a previously granted waiver, but it must give the franchisee a reasonable timeframe to adjust to the change. This clause ensures that Checkers retains flexibility in enforcing the franchise agreement while also providing the franchisee with some protection against abrupt changes.
This type of clause is relatively common in franchise agreements, as it allows the franchisor to adapt to changing circumstances and ensure consistent enforcement of standards across the franchise system. However, prospective franchisees should carefully consider the implications of such a clause, as it introduces an element of uncertainty into the franchise relationship. Franchisees should maintain open communication with Checkers to understand the circumstances under which a waiver might be revoked and to address any concerns proactively.