Does the Checkersrallys agreement specify that rights are cumulative?
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 the 2025 Checkersrallys Franchise Disclosure Document, the rights of both Checkersrallys as the Franchisor and the Area Franchisee are cumulative. This means that if either party exercises or enforces any right or remedy under the agreement, it does not prevent them from exercising or enforcing any other right or remedy they are entitled to by law.
This provision ensures that Checkersrallys and its franchisees retain all available legal options and protections. For a franchisee, this could mean that Checkersrallys's decision to pursue one course of action in response to a breach does not limit their ability to pursue other remedies simultaneously or in the future. This protects Checkersrallys's interests by ensuring they can fully address any issues that arise.
However, the agreement also states that any failure, neglect, or delay by either party to assert a breach or violation of any right could be considered a waiver of that right, unless written notice is provided within 12 months of the breach or discovery of the facts. This encourages both parties to promptly address any concerns and prevents either party from later claiming a violation if they did not act in a timely manner. This clause balances the cumulative rights with a responsibility to act promptly.
This type of clause is fairly standard in franchise agreements, aiming to protect both parties' interests while also setting a reasonable timeframe for addressing potential breaches or violations. Prospective Checkersrallys franchisees should understand the implications of this clause, particularly the importance of providing timely written notice of any breaches to preserve their rights.