Will Checkersrallys be deemed to have waived any right reserved by the Checkersrallys franchise agreement due to custom or practice?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
You and we shall not be deemed to have waived any right reserved by this Agreement by virtue of any custom or practice of the parties at variance with it; any failure, refusal or neglect by you or us to exercise any right under this Agreement (except as provided in Section 18.03) or to insist upon exact compliance by the other with its obligations hereunder; any waiver, forbearance, delay, failure or omission by us to exercise any right, whether of the same, similar or different nature, with respect to other Restaurants; or the acceptance by us of any payments due from you after any breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys will not be deemed to have waived any right reserved by the franchise agreement due to any custom or practice. This means that even if Checkersrallys has, in the past, not enforced a specific clause or requirement of the agreement, they still retain the right to enforce it in the future.
This provision protects Checkersrallys from inadvertently losing rights due to past leniency or inconsistent enforcement. It also means that franchisees cannot rely on past practices as a guarantee of future behavior by Checkersrallys. Checkersrallys can change its approach to enforcing the agreement at any time.
For a prospective franchisee, this underscores the importance of fully understanding the franchise agreement and adhering to its terms. Franchisees should not assume that because a certain rule has not been strictly enforced in the past, it will not be enforced in the future. It is crucial to maintain compliance with all aspects of the agreement to avoid potential issues with Checkersrallys.
This type of clause is common in franchise agreements, as it allows the franchisor to maintain control over the brand and system standards, even if they have not always strictly enforced every rule. Franchisees should be aware of this and operate their businesses accordingly.