Under what conditions does a failure to assert a breach or violation of a legal or equitable right constitute a waiver of that right for Checkersrallys?
Checkersrallys 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 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 twelve (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 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys'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 can result in a waiver of that right.
However, this waiver is conditional. To avoid waiving the right, the party must provide written notice specifying the breach or violation to the other party within twelve months. This twelve-month period starts from the later of two dates: either the date of the breach or violation itself, or the date when the facts of the breach or violation were discovered (or could have been discovered through reasonable diligence).
This clause essentially sets a statute of limitations on claims related to the Franchise Agreement. If a franchisee or Checkersrallys believes the other party has violated the agreement, they must act promptly to provide written notice. Failing to do so within the specified timeframe could mean losing the ability to pursue legal or equitable remedies for that particular breach. This encourages timely communication and resolution of disputes, preventing issues from lingering and potentially escalating.