Under what conditions can Checkersrallys unilaterally waive an obligation of the franchisee?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
18.02 Waiver of Obligations.We and you may by written instrument unilaterally waive or reduce any obligation of the other under this Agreement. Any waiver granted by us shall be without prejudice to any other rights we may have, will be subject to continuing review by us and may be revoked, in our sole discretion, at any time and for any reason, effective upon delivery to you of ten (10) days' prior notice. 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 Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys can unilaterally waive or reduce any obligation of the franchisee under the Franchise Agreement by providing a written instrument. This means Checkersrallys has the power to modify the franchisee's responsibilities, but it must be documented in writing.
However, any waiver granted by Checkersrallys is not absolute. It is subject to continuing review by Checkersrallys and can be revoked at any time, for any reason, at Checkersrallys's sole discretion. Checkersrallys must provide the franchisee with ten (10) days' prior notice before the revocation becomes effective. This clause gives Checkersrallys significant flexibility in managing the franchise relationship.
The agreement also clarifies that Checkersrallys's actions or inactions do not automatically constitute a waiver of its rights. Specifically, any custom or practice that deviates from the agreement, failure to exercise a right, delay in enforcing compliance, or acceptance of payments after a breach does not mean Checkersrallys has waived its rights. This protects Checkersrallys from inadvertently losing its rights due to leniency or inconsistent enforcement. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's interests and maintain control over the franchise system.