Under what condition does a failure to assert a breach constitute a waiver of rights for Checkers?

According to Checkers's 2025 Franchise Disclosure Document, a failure, neglect, or delay by either party to assert a breach or violation of any legal or equitable right arising from or connected with the Franchise Agreement will constitute a waiver of that right. This waiver prevents the party from exercising or enforcing any legal or equitable remedy related to that breach.

However, this waiver is conditional. To avoid waiving their rights, the party must provide written notice specifying the breach or violation to the other party. This notice must be given within twelve months after the later of either the date the breach or violation occurred, or the date the facts of the breach were discovered or could have been discovered through reasonable diligence.

In practical terms, this means a Checkers franchisee needs to be vigilant in identifying any potential breaches of the agreement by Checkers. If a franchisee suspects a breach, they must promptly investigate and send a formal written notice to Checkers within the specified timeframe to preserve their legal rights. Failure to do so could result in the franchisee losing the ability to take legal action regarding the breach. This clause encourages proactive communication and timely resolution of disputes, as it sets a clear deadline for addressing concerns and asserting rights under the agreement.