Under the Checkers franchise agreement, is there any exception to the rule that failure to assert a breach constitutes a waiver of rights?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, and except as otherwise prohibited or limited by applicable law, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, there are some exceptions to the rule that failure to assert a breach constitutes a waiver of rights. Specifically, any failure, neglect, or delay of a party to assert any breach or violation of any legal or equitable right is subject to applicable law.
This means that while the Checkers franchise agreement generally holds both parties accountable for promptly addressing breaches, this is not absolute. The agreement acknowledges that certain legal restrictions might prevent a party from immediately asserting their rights. This could be due to statutory waiting periods, requirements to attempt mediation first, or other legal constraints that temporarily limit the ability to take action.
For a prospective Checkers franchisee, this clause offers a degree of protection. It ensures that franchisees are not penalized for failing to act immediately if the law provides them with a grace period or requires them to follow a specific procedure before pursuing a claim. However, it's important to note that this exception is not a blanket waiver. Franchisees should still diligently pursue their rights and remedies within the bounds of applicable law to avoid any potential waiver issues.
It is important for a prospective franchisee to seek legal counsel to fully understand their rights and obligations under the franchise agreement and applicable state laws. This will help ensure they are aware of any specific requirements or limitations that may affect their ability to assert a claim in a timely manner.