If Chem Dry grants a waiver, can it be revoked, and if so, what is the required notice period?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
- CDI and FRANCHISEE may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice thereof to the other or another effective date stated in the notice of waiver. Any waiver granted by CDI shall be without prejudice to any other rights CDI, or its affiliates, may have, and will be subject to continuing review by CDI and may be revoked, in CDI's sole discretion, at any time and for any reason, effective upon delivery to FRANCHISEE of ten (10) days prior written notice.
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, any waiver granted by Chem Dry can be revoked at any time, for any reason, at Chem Dry's sole discretion. To revoke a waiver, Chem Dry must deliver a written notice to the franchisee at least ten days in advance of the revocation's effective date.
This means that even if Chem Dry initially agrees to relax or waive a specific requirement or obligation for a franchisee, it retains the right to reinstate that requirement later. The franchisee needs to be aware that any waiver is not permanent and could be withdrawn with only ten days' notice. This could impact the franchisee's operations if they have made business decisions based on the waiver.
This clause gives Chem Dry significant flexibility in managing its franchise system and ensuring compliance with its standards. However, it also introduces an element of uncertainty for franchisees, as they must remain prepared to comply with all original obligations even if a waiver is in place. Franchisees should carefully consider this aspect and factor it into their business planning and risk management strategies.