According to the Checkersrallys agreement, what is the effect of the exercise of any right or remedy?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
10.03 Exercise of Rights of Parties. The rights of Franchisor and Area Franchisee hereunder are cumulative and no exercise or enforcement by Franchisor or Area Franchisee of any right or remedy hereunder shall preclude the exercise or enforcement by Franchisor or Area Franchisee of any other right or remedy hereunder which Franchisor or Area Franchisee is entitled to enforce by law. If Area Franchisee commits any act of default under this Agreement for which Franchisor exercises its right to terminate this Agreement, Area Franchisee shall pay to Franchisor all actual, consequential, special and incidental damages Franchisor incurs as a result of the premature termination of this Agreement regardless of whether or not such damages are reasonably foreseeable. Area Franchisee acknowledges and agrees that the proximate cause of such damages sustained by Franchisor is Area Franchisee's act of default and not Franchisor's exercise of its right to terminate. 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 arising from or in connection with this Agreement, shall constitute a waiver of such right and shall preclude the exercise or enforcement of any legal or equitable remedy arising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the rights of both Checkersrallys and the Area Franchisee are cumulative. Exercising or enforcing any right or remedy does not prevent either party from exercising or enforcing any other right or remedy they are entitled to by law.
If the Area Franchisee defaults, leading Checkersrallys to terminate the agreement, the Area Franchisee is responsible for all actual, consequential, special, and incidental damages Checkersrallys incurs due to the early termination, regardless of foreseeability. The agreement specifies that the Area Franchisee's default, not Checkersrallys's termination, is the direct cause of these damages.
However, any failure, neglect, or delay by either party to address a breach or violation of a legal or equitable right under the agreement acts as a waiver of that right. This waiver prevents the enforcement of any related legal or equitable remedy, unless written notice specifying the breach or violation is provided within 12 months of the later of the date of the breach or the date the facts were discovered (or could have been discovered with reasonable diligence).