Does Chem Dry's acceptance of payments after a breach constitute a waiver of its rights?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
contained in this Agreement; or the acceptance by CDI, or its affiliates, of any payments due from FRANCHISEE after any breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, Chem Dry's acceptance of payments from a franchisee after a breach of the franchise agreement does not automatically constitute a waiver of Chem Dry's rights. Chem Dry retains its rights and ability to address the breach, despite accepting payments.
This means that even if a Chem Dry franchisee violates the agreement, Chem Dry can still accept payments without forfeiting its right to take action regarding the breach. This protects Chem Dry's ability to maintain standards and enforce the franchise agreement terms.
This provision is common in franchise agreements, allowing franchisors to continue receiving revenue while addressing compliance issues. However, Chem Dry franchisees should be aware that continued payments do not excuse any breaches and Chem Dry can still pursue remedies for violations.