Can Chem Dry revoke a waiver of obligation at any time, and if so, what is the required notice?
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, Chem Dry can revoke a waiver of obligation that it has granted to a franchisee. Chem Dry has sole discretion over this decision, and can revoke a waiver at any time and for any reason.
To revoke a waiver, Chem Dry must provide the franchisee with ten days prior written notice. This means that the franchisee will have ten days from the date they receive the notice to comply with the original obligation that was previously waived.
This clause gives Chem Dry significant flexibility in enforcing the franchise agreement. A prospective franchisee should carefully consider the implications of this clause, as Chem Dry could reinstate obligations that were previously waived, potentially impacting the franchisee's business operations.